The Australian Government has recently announced an increase to the instant asset write off threshold – from $30,000 to $150,000 and has also expanded access to include businesses with an aggregated annual turnover of less than $500 million (where it was previously up to $50 million). 

The instant asset write off applies to new or second hand first used assets installed and ready for use before 30 June 2020.

This means that assets now worth up to $150,000 can be written off immediately.

The change is effective now, but only until 30 June 2020.

$150k Instant Asset Write Off:

  • Applies to any asset that can be used for business purposes with a price of $150k or less (excl. GST)
  • Assets must be purchased and installed from March 12th to June 30th 2020
  • Assets can be new or second hand
  • $150k limit for each individual asset and therefore multiple assets (totalling more than $150k) can be claimed under this initiative
  • No limit to the amount of assets acquired

50% Instant Depreciation Write Off (on assets over $150K)

  • Any eligible assets with a purchase price greater than $150K (excl. GST) acquired from March 12th to June 30th 2021
  • Assets must be new
  • The extended initiative will also be applicable to assets of $150k or less for an extra year once the $150k Instant Asset Write Off has expired on June 30 2020
  • No limit to the amount of assets acquired under the initiative

For further information, visit the Government Treasury website: https://treasury.gov.au/sites/default/files/2020-03/Fact_sheet-Support_for_business_investment.pdf

 

Please be advised that most of Allshelter’s products are eligible for this instant asset write off.

We strongly recommend you discuss your eligibility for these initiativies with your accountant or financial advisor.