Good news for instant asset write-off
If you ’re looking to claim a deduction for assets purchased for your business, the $150,000 instant asset write-off threshold has been extended to 31 December 2020. This means, if eligible, you can claim an immediate deduction for the business portion of an asset first used or installed ready for use from 1 July to 31 December 2020, in your 2020-21 tax return.
If the asset was first used or installed ready for use between 12 March to 30 June 2020, and your business is eligible, you can include it as an immediate deduction in you 2019-20 tax return.
Eligibility depends on:
- aggregated turnover of less than $500 million
- the date you purchased the asset
- when the asset was first used, or installed, ready to use
- the cost of the asset being less than the $150,000 threshold.
If you decide to use the simplified depreciation rules, the instant asset write-off applies to all eligible assets you own. Exclusions and limits apply in certain instances, e.g, passenger vehicles.