As part of the Australian Government’s economic response to coronavirus, from 12 March 2020 the instant asset write-off (IAWO) threshold has been increased from $30,000 to $150,000*.
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.
The government has also expanded access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million), opening the scheme to more businesses across the country.
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.