Government Increases Instant Asset Write-Off
March 24, 2020
When the Government introduced the Instant Asset Write-Off in 2015 during a tough economic time for small Businesses, the amount was $20,000. And it allowed many businesses to take advantage of Adding new Plant or Equipment with the added benefit of claiming instantly. The Grant was raised in 2019 to $ 30, 000 and subsequently in 2020 the grant has now been increased to $ 150 000. The criteria for qualifying has also broadened to include businesses with aggregated annual turnover of less than $500 million ( this is up from $50 million).
The increase in the IAWO threshold will provide cash flow benefits for businesses as you will be able to immediately deduct purchases of eligible new or used assets, that cost less then $150,000 each. This is only available for assets purchased and installed ready for use between the period of 12 March 2020 to 30 June 2020.
From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $1 million and the threshold will be $1,000.
The types of assets that can be written off include but are not limited too
- New Demo or used car, van or truck
- Computers, laptops, tablets or phones
- Tools and equipment
- Office furniture
For complete details regarding the Instant Asset Write-Off and to check your business eligibility check out the ATO Website click here
If you would like to purchase a New, Demo or used vehicle to take advantage of the IAWO click here to browse what we have in stock at Midway Ford.
Disclaimer: Any information in this Blog is only generalised information, Your own specific circumstances would obviously need to be considered and you would need to consult your accountant before making any financial decisions to make sure you qualify for the I.A. Write-Off and that the purchase decisions are right for your Business. This is purely informational and is not advice as we are not a certified accounting body.