The government has increased the instant asset write-off to $30,000 (extended to 30 June 2020 cut-off). Assets costing less than the instant asset write-off threshold are written off in the year they are first used or installed ready-for-use (new or second-hand).
This would give more small businesses in Australia access to the scheme.
You may be eligible for the instant asset write-off if you have a turnover with less than $10 million to those with less than $50 million.
If you have a small business with an aggregated turnover of less than $10 million (from 1 July 2016 onwards) or $2 million (previous income years), you can choose to use the simplified depreciation rules.
If you purchased an asset costing less than $30,000 and it is used or installed ready-for-use from 7.30pm (AEDT) on 2 April 2019 — 30 June 2020, you can immediately deduct the business portion of most depreciating assets.
The general depreciation rules must be used for assets purchased costing $30,000 or more.
Here are the different instant asset write-off thresholds:
7:30pm (AEDT) 02 April 2019 —
30 June 2020
29 January 2019 —
before 7.30pm (AEDT) 02 April 2019
7.30pm (AEST) 12 May 2015 —
28 January 2019
01 January 2014 —
before 7.30pm (AEST) 12 May 2015
01 July 2012 —
31 December 2013
01 July 2011 —
30 June 2012
The entire cost of the asset must be less than the threshold. The cost of an asset includes all of the items that can be attributed to its purchase and to putting the asset to use. These costs include the purchase price, transportation, appraisals, warranties, installation, and testing.
Note: You must include the taxable purpose proportion of the amount you received for the asset in your assessable income if you sell or dispose of an asset for which you claimed an instant asset write-off.
If you need to fix your cash flow problem or noticed a great business opportunity, you can apply for instant cash loans in Australia.
Cigno Business Solutions specialises in short-term business loans. CBS assesses applications with a database approach — less paper pushing and quick delivery of your business loan. In most cases, CBS will be able to process your application, approve your loan and transfer the funds within 2 hours.
Get in touch with CBS today, with a team who worked in business finance for years, and get the help you need. Apply now!