There have been recent changes to the instant asset write-off :

  • The instant asset write-off threshold has increased from $20,000 to $30,000 for each asset from 7.30pm (AEDT) 2 April 2019
  • the instant asset write-off has been extended to 30 June 2020.

You have access to the instant asset write-off if you are either:

  • A small business entity that has an aggregated turnover (the total normal income of your business and that of any associated businesses) of less than $10 million; or
  • A business with an aggregated turnover from $10 million to less than $50 million

These businesses can claim a deduction of less than $30,000 for the business portion of each asset (new or second hand), purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020.

For individual assets that cost $30,000 or more, they can continue to be deducted over time using the small business pool or the general depreciation rules.

For the eligible businesses (small businesses with aggregated turnover less than $10 million) that acquired assets before 7.30pm (AEDT) 2 April 2019, the thresholds will be as follows:

  • $25,000, from 29 January 2019 until before 7.30pm (AEDT) on 2 April 2019
  • $20,000, before 29 January 2019.

(Businesses with aggregated turnover from$10 million to less than $50 million can only access instant write-off from 7.30pm (AEDT) 2 April 2019)

Please do not hesitate to contact our office if you have any questions.

Additional information can also be found on the following ATO pages:

Definition of small business entities

Definition of aggregated turnover

Simpler depreciation for small business

Instant asset write-off increased and extended

Instant asset write-off thresholds—rules-and-calculations/?page=4