In exciting news for Australian small-medium businesses, this year’s budget included a boost to the instant asset write-off. The 2019/20 financial year sees the threshold increasing to $30,000.
As an added incentive the eligibility criteria has been extended to include businesses with an annual revenue of up to $50m (previously capped at $10m) which means that medium sized businesses can now join small businesses in benefiting from this scheme.
From April 2nd, 2019, until the June 30, 2020 cut-off every business that meets the criteria will be able to claim the write-off to as many individual items as they wish.
The ATO website explains with the following example:
Barry owns a plumbing business. On 10 April 2019, Barry purchases and starts to use a new van for his business valued at $22,000. The following month he purchases and starts to use a trailer to support his business which costs him $14,000. Barry has spent a total of $36,000. As the $30,000 instant asset write-off threshold applies to each asset, Barry is able to claim both the van and the trailer in his 2019 tax return.
The Government currently has no plans to extend the scheme past the June 30, 2020 cut-off, so make sure you take advantage of this scheme while you can.