Instant Asset Write-Off


March 16, 2020

The instant asset write-off was introduced in 2015 to help small businesses through a tough period of economic change, and has increased from $20,000 in 2015 to $30,000 in 2019.

The Government has now increased the instant asset write-off threshold from $30,000 to $150,000.

How will the higher instant asset write-off benefit your business?

The higher IAWO threshold will provide cash flow benefits for businesses as you will be able to immediately deduct purchases of eligible new or used assets, that cost less then $150,000 each.

You can claim on assets such as:

  • New or used car, van or truck
  • Computers, laptops or tablets
  • Tools and equipment
  • Office furniture

Deductions can be claimed per asset so if your business is eligible, you may be able to write-off multiple assets straight away.

Who can access the higher IAWO?

The Government has increased the asset threshold and also increased the aggregated annual turnover for business from $50 million to $500 million.

The increase in the annual turnover threshold means that an additional 5300 business will be able to access IAWO for the first time.

However, you need to be aware that this higher IAWO threshold is only available from 12th March 2020 to 30th June 2020. From July 1st 2020 the threshold will revert back to $1,000 for small businesses with an annual turnover of less than $10 million.

 

For more information about the IAWO and depreciation rules, head to the ATO website.

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