Changes to the small business instant asset write-off
26 February, 2019 / In Announcements / By admin
Since 12 May 2015 any small business entity that acquired an asset for less than $20,000 was able to claim an instant deduction for the cost.
This was due to revert back to the original $1,000 on 1 July 2019 but the Government have since introduced and passed legislation that extended the small business instant asset write-off by another 12 months to 30 June 2020.
The recently passed Bill also increased the write-off threshold from $20,000 to $25,000 – which took effect retrospectively from 29 January 2019.
Small Business Entities (SBE’s) that have an aggregated turnover of under $10 million can claim an immediate deduction for the cost of a business-use asset acquired between 29 January 2019 and 30 June 2020 provided the cost of the asset is less than $25,000. Please note that the cost is the GST exclusive price where the Small Business Entity is GST registered and claims a GST credit on the purchase of the asset.