ANNOUNCEMENT – INSTANT ASSET WRITE OFF EXTENDED
On 9 June 2020 the Australian Government announced that the Instant Asset Write-Off has been extended until 31 December 2020 for eligible businesses.
The scheme provides eligible businesses with an immediate tax deduction for the full value of certain assets.
The following eligibility criteria applies:
- The total cost of each asset must be less than $150,000 (exc. GST);
- Your business’ annual turnover must be less than $500 million;
- Assets must be purchased between 12 March 2020 and 31 December 2020; and
- Assets must be installed and ready for use in order to claim the tax deduction, and at the latest by 31 December 2020.
It is important to note that existing motor vehicle depreciation limits still apply. For vehicles that are designed to carry passengers, the car depreciation limit remains $57,581 for the 2019-20 financial year.
The car depreciation limit increases to $59,136 for 2020-21 financial year.
The following assets are excluded from the Instant Asset Write Off:
- The private portion of assets;
- Assets that are leased;
- Horticultural plants;
- Software allocate to a software development pool; and
- Capital works deductions (i.e. renovations to business premises).
Should you have any questions regarding the Instant Asset Write-Off Scheme, please do not hesitate to contact us.