Instant Asset Write-off for Small Businesses

28th May 2019 |

Recently there have been some changes to the Instant Asset Write-Off threshold for small businesses.

What is Instant Asset Write-Off?

• Assets which cost less than the below write off threshold can be written off (fully deducted) in the financial year that they are used or installed ready for use. This includes second-hand purchases.
• To be eligible, the entire cost of asset (irrespective of any trade-in amount) must be less than the threshold. If you are registered for GST then the value to determine eligibility is the GST exclusive amount. If you are not registered for GST then the GST inclusive amount is used.
• The asset is 100% deductible if it is used solely for your business. If there is any private use then you must subtract this private use portion before making the claim. Regardless, the entire cost of the asset must be less than the threshold for you to use the instant asset write-off.

Instant asset write-off thresholds

• From 12 May 2015 to 28 January 2019 assets purchased below $20,000 can be immediately written off.
• From 29 January 2019 to 2 April 2019 (7.30pm AEDT) assets purchased below $25,000 can be immediately written off.
• From 2 April 2019 (7.30 pm AEDT) to 30 June 2020 assets purchased below $30,000 can be immediately written off.

The write off is expected to provide taxation and cash flow benefits.
Contact CrossCorp if you have questions or need help in preparing your businesses cash flow or tax planning.