The instant asset write-off (tax deduction) threshold has increased to $30,000, and has been extended to 30 June 2020.
Your business can claim an immediate tax deduction of up to $30,000 for the business portion cost of each asset (new or 2nd hand), which is purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020.
Business Asset = an asset used in a business that has a limited effective life and is expected to decline in value over the period you use it.
I can’t recommend strongly enough to speak to your accountant on how you take take full advantage of this, as this now gives businesses 3-Tiers of asset write-off, dependant on when you bought it, when you dispose of it, what its “effective life” is.
These tiers are:
- $30,000, from 7.30pm (AEDT) 2 Apr 19 – 30 Jun 20
- $25,000, from 29 Jan 19 – 7.30pm (AEDT) 2 Apr 19
- $20,000, before 29 Jan 19.