COVID-19 Updates

Instant asset write-off expansion

Asset Write Off

The instant asset write-off was expanded in March to support businesses through COVID-19. From 12 March 2020 until 30 December 2020, the instant asset write-off:

■        threshold for each asset increased to $150,000 (up from $30,000)

■        eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).

Businesses can claim an immediate deduction (business portion only) for multiple assets, new or second hand, provided each asset costs less than $150,000. Assets must be first used or installed ready for use between 12 March 2020 and 30 June 2020 to claim the expanded threshold.

Note some exclusions and limits apply. For example, a car limit of $57,581 applies to passenger vehicles (except motor cycles or similar vehicles) designed to carry less than one tonne and fewer than nine passengers.

Small businesses (aggregated turnover of less than $10 million) can also claim a deduction for the balance of their small business pool if it is less than $150,000 at the end of the 2019-20 financial year (before applying the depreciation deductions).

For more information about the instant asset write-off, including eligibility criteria and the different thresholds, visit ato.gov.au/instantassetwriteoff