Know If Your Business Can Take Advantage of the Instant Asset Write-off
On 29th January 2019, the Prime Minister (Scott Morrison at the time) announced that the government will propose legislation to increase the $20,000 instant asset write-off threshold to $25,000 from 29 January until 30 June 2020. This is proposal and not yet law. It has sparked interest for small business owners and an increase in calls from our clients who want to know how they can take advantage of the asset write-off.
What is the instant asset write-off?
Currently, the instant asset write-off allows small businesses (with an annual turnover of less than $10 million) to claim immediate deductions of up to $20,000 for new or second-hand plant and equipment asset purchases. The assets must be in use, or installed for use, in the income year that you are claiming for.
The proposed legislation will increase the amount to $25,000, which could have a significant impact on the business efficiency and cash flow of a small business.
Some of the eligible assets include:
- Electrical tools
If you want to take advantage of the instant asset write-off this financial year and you don’t currently have the capital to purchase assets, talk to us about how you can ensure you don’t miss out on this tax break before the end of the financial year. Get in touch with us now! Call us on 07 3226 1800 or send us a message here.
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