The $150,000 instant asset write off will soon revert to its original threshold of $1,000 from 1 July 2020, so please consider the measure ahead of the end of the financial year.
Announced by the government as part of the stimulus package in early March, the instant asset write-off for businesses with an aggregated turnover of less than $500 million was increased from $30,000 to $150,000.
For businesses that decide to utilise the instant asset write-off, the asset will need to be used or installed ready for use by 30 June 2020.
It is very important to note, the increased and expanded measure will only run until 30 June 2020, before reverting to its legislated $1,000 threshold and reduced eligibility to small businesses with turnover of less than $10 million.
For those who are considering purchasing a car, the ATO has reminded that the instant asset write-off will be limited to the car limit of $57,581 for the 2019-20 income tax year, with the excess cost unable to be claimed under any other depreciation rules.
If you have any questions or require any assistance please don’t hesitate to contact us.