Small Business Tax: Instant Asset Write Off

Are you a small business owner? Don’t forget the $20,000 tax deduction for purchase of new assets (this will increase to $30,000*
from Budget night)

What is the instant asset write off?

Assets purchased for the business costing less than $20,000* can be claimed as a full tax deduction in
the financial year of purchase, that is they do not need to be depreciated over their expected useful life.
Note, this applies to assets purchased new or second-hand.

Which businesses are eligible?

You qualify for this tax deduction if you have a small business with an aggregate turnover (the total
income of the business and that of any associated businesses) of less than $10 million. (the recent
Federal Budget has increased this threshold to $50 million.)

*Proposed changes

Please note that the Prime Minister has announced;

  1. that this ‘instant asset write off’ legislation will be extended to 30 June 2020
  2. the write off threshold to be increased to $30,000 and
  3. the write off is extended to businesses with an aggregated turnover of under $50m

*Please note that these proposed changes are not yet law.

Should you have any questions with regard to ‘instant asset write off’, please feel free to contact Peter Quinn by submitting an enquiry or calling us on +61 2 9580 9166.

The information in this document does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it.  It is important that your personal circumstances are taken into account before making any financial decision and it is recommended that you seek assistance from your financial adviser.