Are You Eligible for the Small Business Instant Asset Write-off?

Know If Your Business Can Take Advantage of the Instant Asset Write-off

On 29^th 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:

• Computers
• Electrical tools
• Furniture
• Curtains
• Carpets
• Cars

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