The instant asset write off for small businesses has been extended to
31 December 2020. The instant asset write off allows small businesses (businesses with an annual turnover of less than $500M) to claim an immediate deduction
(up to $150,000 excluding GST) for new or second-hand plant and equipment asset purchases such as trucks, machinery, tools and office equipment. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided each costs less than $150,000.
The asset must be in use or ready for use by 31 December 2020.
The purpose of the $150,000 instant asset write off is to accelerate the speed at which you can claim deductions on your capital purchases.
The deduction is effectively brought forward.
Be careful with motor vehicles as they are subject to special rules applying both to the amount you can claim as a deduction and the GST you can claim.
Contact us to discuss your businesses eligibility. firstname.lastname@example.org
Paul Griffiths CA CTA
Paul Griffiths is a Chartered Accountant with over 20 years assisting Australian Small Businesses with income tax, succession and tax planning matters.