What is an Instant Asset Write-off?

The instant asset write-off allows small to medium-sized businesses to claim immediate deductions for plant and equipment asset purchases (both new and second-hand). Equipment includes vehicles, tools, machinery and office equipment. The asset must be installed and/or used in the income year you're claiming for.

How much can I write-off?

Originally the maximum threshold was $30,000 but now this has been increased to $150,000 for businesses with aggregated annual turnover between $50m-$500m. The write-off threshold is dependent on your annual turnover. This applies from 12 March 2020 until 30 June 2020, for new or second-hand assets first used or installed ready for use in this timeframe.

The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets.

Eligibility to use instant asset write-off depends on:

From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.

Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.

Find more information and apply here: https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/