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Expanded Instant Asset Write-Off to End in Coming Weeks

Published by:
James Morris
Published on:
May 27, 2020
Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215
Expanded Instant Asset Write-Off to End in Coming Weeks

*Please note the dates have been revised by the ATO. Click here to find out more.

SME’s are being reminded by the ATO that there is just weeks left to make the most of the Governments increased instant asset write-off.

Many businesses are overlooking the opportunity, despite the instant asset write-off being five times the usually available amount.

The government announcement in March that $700 million is being injected to increase the instant asset write-off from $30,000 to $150,000 was designed to encourage the purchase of bigger ticket items such as cars and equipment.

The measure has not only increased the asset write off but expanded the inclusion to businesses with aggregated annual turnover of less than $500 million from the previous $50 million.

This expanded measure will run until 30 June 2020.

The new threshold of $150,000 applies for a limited time for depreciated assets first used or installed for use between 12 March 2020 and 30 June 2020. After this period the threshold will reduce to $1,000.

Excluded assets include trading stock items, land, non-farming buildings and capital works, horticultural plants, water facilities, fodder storage assets and farm fencing.

Motor vehicles are eligible assets however a car cost limit of $57,581 for 2019-20 still applies to cap deductions.

More information can be found on the ATO website here.

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IMPORTANT INFORMATION: This blog has been prepared by Modoras Accounting (QLD) Pty. Ltd. ABN 81 601 145 215. The information and opinions contained in this blog is general information only and is not intended to represent specific personal advice (Accounting, taxation, financial, insurance or credit). No individuals’ personal circumstances have been taken into consideration for the preparation of this material. The information and opinions herein do not constitute any recommendation to purchase, sell or hold any particular financial product. Modoras Accounting (QLD) Pty. Ltd. recommends that no financial product or financial service be acquired or disposed of or financial strategy adopted without you first obtaining professional personal financial advice suitable and appropriate to your own personal needs, objectives, goals and circumstances. Information, forecasts and opinions contained in this blog can change without notice. Modoras Accounting (QLD) Pty. Ltd. does not guarantee the accuracy of the information at any particular time. Although care has been exercised in compiling the information contained within, Modoras Accounting (QLD) Pty. Ltd. does not warrant that the articles within are free from errors, inaccuracies or omissions. To the extent permissible by law, neither Modoras Accounting (QLD) Pty. Ltd. nor its employees, representatives or agents (including associated and affiliated companies) accept liability for loss or damages incurred as a result of a person acting in reliance of this publication. Liability limited by a scheme approved under Professional Standards Legislation.

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