Under the instant asset write-off, eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.
This is a great incentive for small businesses who may be considering new carwash equipment or upgrading their existing machinery. From March 2020 the government extended the instant asset write-off amount to cover purchases up to $150,000 for business with a turnover of less than $500 million.
From 12 March 2020 until 31 December 2020 the 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).
If you have any questions regarding how you can take advantage of these tax incentives and capitalise on your investments. Contact our team.
For more information, visit the ATO instant asset write off for eligible businesses webpage »