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Instant Asset Write-Off

Instant Asset Write-Off

From March 12th 2020 the Australian Government increased the instant asset write-off threshold to help Australian businesses and companies in challenging times.
 

 

 

 

To Qualify

To qualify the annual turnover threshold for businesses is now increasing from $50 million to $500 million. Expanding the threshold will mean an additional 5,300 businesses who employ around 1.9 million Australians will be able to access the Instant Asset Write-off for the first time.

 

The Increase

The asset write-off has been increased from $30,000 to $150,000.

 

The Threshold

The threshold applies on a per asset basis, so eligible businesses can immediately write‑off multiple assets. The IAWO is due to revert to $1,000 for small businesses (turnover less than $10 million) from 1 July 2020.

Is your business eligible to apply? Read more

 

Eligibility

The good news is that the Government is expanding access so that more businesses can take advantage of the Instant Asset Write-Off.

 

To qualify the annual turnover threshold for businesses is increasing from $50 million to $500 million. Expanding the threshold will mean an additional 5,300 businesses who employ around 1.9 million Australians will be able to access the Instant Asset Write-Off for the first time.

 

Timing

This proposal timeframe is currently from 12 March 2020 until 30 June 2020, for new or second‑hand assets first used or installed ready for use in this timeframe.

However, these changes do not take effect until new laws are passed.

We'll provide more information about how to access the IAWO as it becomes available.

 

Seek independent advice from your accountant.

We are advising all customers to speak to their accountant and seek professional advice before making a purchase decision.

 

Further Information

For more information regarding the Instant Asset Write-off program and other stimulus package supporting Australian Businesses please visit business.gov.au.

 

Source 

 

 

INSTANT ASSET WRITE-OFF

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