Good News For Small Business With Instant Asset Write-Off Scheme To Be Extended
Recently that the Prime Minister, Scott Morrison announced an intended extension of the instant asset write-off scheme is being extended through to 30 June 2020 and an increase in the current threshold of $20,000 increased to $25,000.
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 $30,000 and immediately write-down the asset”.
The legislation is expected to be passed through parliament in February 2012.