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$150k Instant Asset Write-Off Extended

Published by:
Peter Hetherington
Published on:
February 11, 2021
Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215
$150k Instant Asset Write-Off Extended

Temporary Full Expensing

For assets first used or installed ready for use for a taxable purpose, between 7:30pm AEDT on 6 October 2020 and 30 June 2022, an immediate deduction in now available for the business portion of the cost of eligible new depreciating assets.

For businesses with an aggregated turnover of less than $50 million, temporary full expensing also applies to the business portion of eligible second-hand depreciating assets.

Instant Asset Write Off

The $150,000 instant asset write-off has now been extended to encourage businesses to invest.

The instant asset write-off scheme provides immediate tax deductions for small and medium businesses on certain purchases, allowing business to pay less tax on their profits.

The extension will enable businesses additional time to acquire and install assets.

The threshold applies per purchase, so eligible businesses can write-off multiple assets costing less than $150,000, with assets needing to be purchased before 31 December 2020 and must be used or installed and ready for use before 30 June 2021.

Previous rules allowed businesses with turnover of up to $50 million per year to write off purchases up to $30,000, but has been extend to businesses making up to $500 million per year and purchases up to $150,000.

Note: where a business can use either instant asset write-off or temporary full expensing, the more generous temporary full expensing takes precedence.

More information can be found on the ATO website here.

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