$150K Instant Asset Write-off Extended

The Government made changes to the $150k instant asset write-off scheme that could see more businesses able take advantage of this perk. On the 9^th of June 2020, the Government stated they will be extending the scheme for another six months until the 31^st of December 2020.

So, who is eligible to take advantage of the instant asset write-off? Australian businesses with an annual turnover of less than $500 million (up from $50 million) will be able to take advantage of the extended timeframe to acquire and install assets up to $150,000 (up from $30,000). Further to this, businesses could benefit from the scheme as it could boost cash flow by bringing forward tax deductions for eligible purchases.

The instant asset write-off will revert on the 1^st of January 2021 and will then only be available for small businesses with a turnover of less than $10 million, and the threshold will be decreased to $1,000.

There are some further conditions to consider regarding eligible assets, so if you need to discuss your situation with one of our experienced accountants please contact our office.

– Nicola Dawson & Kanista Arokianathan

Posted 29.07.2020

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