An instant asset write-off allows eligible businesses to claim immediate deductions for new and second-hand plant and equipment such as vehicles and tools.
In response to the COVID-19 situation, the instant asset write-off threshold has been increased from $30,000 to $150,000. Additionally, businesses with an aggregated annual turnover of less than $500 million can also now be eligible.
The threshold applies on a per asset basis, and so businesses can write‑off multiple assets immediately.
This new criterion only remains in place until 30 June 2020. Consequently, VACC is speaking with Federal Government representatives, putting forward the case for an extension into the next financial year.
For more information
At the time of publication, the above information was relevant and correct, in line with the latest government instructions. Visit the resources below to confirm details:
Business.gov.au: Increasing the Instant Asset Write-Off
Australian Taxation Office: Instant asset write-off for eligible businesses