Small Business Instant Asset Write-Off : NOW up to $25,000

As a small business every opportunity to minimise tax is a significant one, so an increase of the instant asset write-off threshold is welcomed and may be taken up by small businesses to decrease tax payments.

Until recently, the instant asset write-off threshold was $20,000 and was due to revert to $1,000 as of 1 July 2019.

However, Prime Minister Scott Morrison made a speech on 29 January 2019 declaring that the Australian Government would extend the instant asset write-off for another 12 months until 30 June 2020 and he also stated that the threshold would increase (to $25,000) for tax returns lodged from financial year end 2019.

This legislation was introduced in to Parliament on 12 February 2019. It is not yet law.

Is your business eligible to claim this tax benefit?

Small businesses – with an annual turnover of up to $10 million – who have purchased and installed or put in to use an asset that cost up to $25,000 between 29 January 2019 and 30 June 2019 may claim an instant write-off of the business portion of that asset’s purchase cost.

The business portion write-off must be claimed in the business’s tax return for the relevant income year, so claiming an asset purchased for up to $25,000 may be done both this financial year end 2019 and next financial year end 2020.

What happens if the asset cost more than $25,000?

If an asset is purchased at a cost greater than $25,000, it may still be deducted but not immediately; rather, its depreciation cost may be deducted over time, over more than one tax return.

YML Group can help you determine eligibility and assist you with making your tax-deductible claims.

How can YML help?

Talk to our YML Chartered Accountants Team today to see how YML Group can assist you with your tax deductions. Contact us on (02) 8383 4400, or by visiting the Contact Us page on our website.