{"id":1183,"date":"2020-05-14T00:00:00","date_gmt":"2020-05-14T00:00:00","guid":{"rendered":"https:\/\/cos.p10.sol1.net\/uncategorized\/changes-to-the-instant-asset-write-off-for-end-of-financial-year-2020\/"},"modified":"2024-05-06T04:24:36","modified_gmt":"2024-05-06T04:24:36","slug":"changes-to-the-instant-asset-write-off-2020","status":"publish","type":"post","link":"https:\/\/www.cos.net.au\/c\/cospedia\/changes-to-the-instant-asset-write-off-2020","title":{"rendered":"Changes to the Instant Asset Write-Off for End of Financial Year 2020"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1183\" class=\"elementor elementor-1183\" data-elementor-post-type=\"post\">\n\t\t\t\t<div class=\"elementor-element elementor-element-454bca89 e-flex e-con-boxed e-con e-parent\" data-id=\"454bca89\" data-element_type=\"container\" data-e-type=\"container\">\n\t\t\t\t\t<div class=\"e-con-inner\">\n\t\t\t\t<div class=\"elementor-element elementor-element-38219f81 elementor-widget elementor-widget-text-editor\" data-id=\"38219f81\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><b>On March 12th, 2020 big changes to the Instant Asset Write Off were announced. Initially the 2019\/20 financial year saw the threshold amount for each asset sitting at $30,000, however for the period between March 12, 2020 &#8211; June 30, 2020 that threshold has been lifted to $150,000 for each asset, with eligibility expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).<\/b><\/p><p>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, providing cash-flow benefits for those able to take advantage.<\/p><p>Eligibility to\u00a0take advantage of the instant asset write off depends on:<\/p><ul><li>your\u00a0aggregated turnover<\/li><li>the date you purchased the asset<\/li><li>when the asset was first used or installed ready for use<\/li><li>the cost of each asset being less than the\u00a0<strong><a class=\"bookmark\" title=\"threshold\" href=\"https:\/\/www.ato.gov.au\/Business\/Depreciation-and-capital-expenses-and-allowances\/Simpler-depreciation-for-small-business\/Instant-asset-write-off\/#Thresholds\" target=\"_blank\" rel=\"noopener\">threshold<\/a><\/strong><\/li><\/ul><p>Come 1st July 2020 the instant asset write-off will revert to being available only to small businesses with an aggregated turnover of less than $10 million and the threshold will be $1,000. Take advantage now before it&#8217;s too late!<\/p><h2>What exactly is the Instant Asset Write-off?<\/h2><p>The instant asset write-off\u00a0allows\u00a0eligible businesses to immediately write off the cost of any asset they purchase in a particular financial year, providing that it costs less than the current threshold (remember, the increased threshold goes away June 20, 2020). Thus allowing\u00a0eligible businesses to claim a significant tax deduction on said purchase, well at least for the business portion of the purchase cost (in the year the asset is first used or installed ready for use).<\/p><p>This not only creates a cash-flow benefit for businesses, it also simplifies\u00a0tax returns since any\u00a0assets valued under the threshold immediately qualify for the write-off.<\/p><p>To\u00a0make the most of these deductions and the recent\u00a0changes to thresholds and eligibility, businesses will need\u00a0to claim before June 30 of this year.<\/p><h2>What can I claim?<\/h2><p>The allowance permits for any business related asset including new tech, operating equipment, cars, and furniture\/fit-outs.<\/p><p>There are a small number of assets that are excluded.<\/p><p>Like most things tax related, the changes to the instant asset write off\u00a0are varied and complex. For a full break down of the ins and outs of the instant asset write off for the 19\/20 financial year you can check out\u00a0<strong><a title=\"this page\" href=\"https:\/\/www.ato.gov.au\/Business\/Depreciation-and-capital-expenses-and-allowances\/Simpler-depreciation-for-small-business\/Instant-asset-write-off\/#Exclusionsandlimits\" target=\"_blank\" rel=\"noopener\">this page<\/a><\/strong> on the ATO website. And remember, come 12:01am on July 1st these changes disappear.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t<div class='watch-action'><div class='watch-position align-left'><div class='action-like'><a class='lbg-style3 like-1183 jlk' href='javascript:void(0)' data-task='like' data-post_id='1183' data-nonce='3c6d52cef8' rel='nofollow'><img class='wti-pixel' src='https:\/\/www.cos.net.au\/c\/wp-content\/plugins\/wti-like-post\/images\/pixel.gif' title='Did you find this useful?' \/><span class='lc-1183 lc'>0<\/span><\/a><\/div><div class='action-unlike'><a class='unlbg-style3 unlike-1183 jlk' href='javascript:void(0)' data-task='unlike' data-post_id='1183' data-nonce='3c6d52cef8' rel='nofollow'><img class='wti-pixel' src='https:\/\/www.cos.net.au\/c\/wp-content\/plugins\/wti-like-post\/images\/pixel.gif' title='' \/><span class='unlc-1183 unlc'>0<\/span><\/a><\/div> <\/div> <div class='status-1183 status align-left'><\/div><\/div><div class='wti-clear'><\/div>","protected":false},"excerpt":{"rendered":"<p>On March 12th, 2020 big changes to the Instant Asset Write Off were announced. Initially the 2019\/20 financial year saw the threshold amount for each asset sitting at $30,000, however for the period between March 12, 2020 &#8211; June 30, 2020 that threshold has been lifted to $150,000 for each asset, with eligibility expanded to &#8230; <a title=\"Changes to the Instant Asset Write-Off for End of Financial Year 2020\" class=\"read-more\" href=\"https:\/\/www.cos.net.au\/c\/cospedia\/changes-to-the-instant-asset-write-off-2020\" aria-label=\"Read more about Changes to the Instant Asset Write-Off for End of Financial Year 2020\">Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":1184,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7,8],"tags":[352,861,353,354,862,863,864,865,683,358,684,359,360,361,685,362,363,335,364,365,366],"class_list":["post-1183","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cospedia","category-productivity","tag-business-tax","tag-changes-to-the-instant-asset-write-off","tag-end-of-financial-year","tag-eofy","tag-fy-2020-instant-asset-write-off","tag-instant-asset-write-off","tag-instant-asset-write-off-19-20","tag-instant-asset-write-off-changes","tag-medium-business","tag-small-business","tag-sme","tag-stocktake-sale","tag-tax-advice","tag-tax-for-smbs","tag-tax-for-smes","tag-tax-returns","tag-tax-savings","tag-tax-time","tag-tax-tips","tag-taxtime","tag-top-tax-tips"],"_links":{"self":[{"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/posts\/1183","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/comments?post=1183"}],"version-history":[{"count":14,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/posts\/1183\/revisions"}],"predecessor-version":[{"id":41220,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/posts\/1183\/revisions\/41220"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/media\/1184"}],"wp:attachment":[{"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/media?parent=1183"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/categories?post=1183"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.cos.net.au\/c\/wp-json\/wp\/v2\/tags?post=1183"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}