ATO Instant asset write-off for eligible businesses – Changes from 12 March 2020
From 12 March 2020 until 30 June 2020 the ATO Instant Asset Write-Off:
- threshold amount for each asset is $150,000 (up from $30,000)
- eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
Note: From 1 July 2020 the Instant Asset Write-Off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000. Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.
Under the instant asset write-off eligible businesses can:
- immediately write off the cost of each asset that cost less than the threshold
- claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use.
- Instant asset write-off can be used for both new and second-hand assets. Some exclusions and limits apply.
The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business’s eligibility and apply the correct threshold amount.
*See the ATO Website for more details.