Instant asset write-off for eligible businesses
Under the instant asset write-off, eligible businesses can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used, or installed ready for use.
Instant asset write-off can be used for:
o multiple assets as long as the cost of each individual asset is less than the relevant threshold
o new and second-hand assets.
It cannot be used for assets that are excluded from the simplified depreciation rules.
The instant asset write-off eligibility criteria and threshold have changed over time. You need to check your business’s eligibility and apply the correct threshold amount. This depends on when the asset was purchased, first used or installed ready for use.
From 12 March 2020 until 31 December 2020 the instant asset write-off:
o threshold amount for each asset is $150,000 (up from $30,000)
o eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).