As part of the Australian Government’s economic response to coronavirus, the instant asset write-off (IAWO) threshold increase has been extended to 31 Dec 2020*.
This means that, if eligible, your business can immediately write off the cost of each asset under the $150,000 threshold and claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed, for both new and second-hand assets.
From 1 January 2021 the instant asset write-off will only be available for small businesses with an aggregated turnover of less than $10 million and the threshold will be $1,000.
For more information on these changes and what they could mean for your business, visit the ATO website.
*Refer to ATO website for full terms and conditions.