It was announced on Tuesday, the Government will extend the $150,000 instant asset write-off until 31 December 2020.
Prior to this announcement, the Instant Asset Write-Off threshold was set to reduce to $1,000 from 1 July 2020.
If you’ve purchased or are planning to purchase assets for your business, you may be eligible to claim an immediate deduction for assets less than $150,000.
The following tips can ensure you get your claim right:
- check if you’re an eligible business
- both new and second-hand assets can be claimed, provided each asset costs less than $150,000
- assets must be first used or installed ready for use between 12 March and 31 December 2020 (Before 30 June 2020 in order to claim in 2020 Financial Year)
- a car limit applies to passenger vehicles. The limit is $57,581 for the 2019–20 income tax year
- if your asset is for business and private use, you can only claim the business portion
- different eligibility criteria and thresholds apply to assets first used, or installed ready for use, prior to 12 March 2020.
If you require any assistance or further information, please do not hesitate to contact our office. We are more than happy to help!