A key feature of the 2015/16 Federal Budget (and subsequent Federal Budgets since) was the $20,000 Instant Asset Write Off scheme for small businesses – a scheme which has proven to be very popular with Small Business Owners. The $20,000 Instant Asset Write Off scheme allows business owners to immediately write off depreciable assets that cost the business less than $20,000.
Due to the recent coronavirus pandemic, the Federal Government is expected to bring forward decision to bring forward the instant asset write-off and increase it from $30,000 to $150,000.
The Morrison Government confirmed on Thursday that the write-off threshold would be lifted to $150,000 and extended to businesses with a turnover of up to $500 million, from $50 million.
The cut-off date to take advantage of the increased limit is June 30. New equipment, computer hardware, office fit-outs, furniture and vehicles are amongst the potential assets, that can be written off.
This new measure is expected to decrease taxes paid by Australian businesses by $2.5billion over the next two years.