- Immediately write off the cost of each asset that cost less than the threshold.
- Claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use.
- Instant asset write-off can be used for both new and second-hand assets. Some exclusions and limits apply.
The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business’s eligibility with the ATO or your Tax Accountant and apply the correct threshold amount.
From the 12th of March 2020 until the 31st of December 2020, the instant asset write-off as available as follows:
Threshold amount for each asset is $150,000 (up from $30,000)
Eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
Eligibility to use instant asset write-off depends on:
Your aggregated turnover (the total ordinary income of your business and that of any associated businesses)
The date you purchased the asset and it was first used or installed ready for use
The cost of each asset being less than the threshold.
The criteria have changed over time so make sure you check whether your business is eligible.
Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.
For more information about this, please visit the ATO website: shorturl.at/ejwAC
If you would like to talk to one of our Sales Advisors to arrange a quote, please call Free call 1800 115 552.