Good News For Small Business With Instant Asset Write-Off Set To Be Extended
On 30 January 2019, the Prime Minister, Scott Morrison delivered some good news for business owners, announcing that the instant asset write-off scheme is expected to be extended through to 30 June 2020 and the current threshold of $20,000 increased to $25,000. The government will be seeking to legislate this change when Parliament resumes on 12 February.
What is the Instant Asset Write-Off Scheme?
Initially, the Instant Asset Write-Off allowed for businesses with an annual turnover of less than $10 million to write-off business assets worth up to or less than $20,000, bought and used or installed ready for use. This applied irrespective of whether the asset was purchased new or second-hand. This would then allow for business owners to claim a deduction for that asset in the same financial income year as the asset was purchased.
What does The Extension Mean?
In the words of “Sco-Mo” himself, it means that “Businesses can go out and invest today, whether it’s a vehicle, a piece of plant or equipment, all of it up to $25,000 and immediately write-down the asset”.
We look forward to providing an update following formal parliamentary approval.
In the meantime, for help with planning your tax effectively and taking advantage of all available business tax benefits contact us.