Extension and increase for instant asset write-off

Officially, the $30,000 instant asset write-off has been passed by both houses of parliament on 4 April 2019.

This means that from 7:30pm AEDT 2 April 2019 to 30 June 2020, assets purchased less than $30,000 will be entitled for an immediate write-off.

The instant asset write-off means that a small business can claim a complete deduction for assets costing less than the threshold. In the past, assets of this size needed to be written off over a number of years under depreciation rules.

There have been a number of changes for assets first used or installed ready for use during the 2018/19 income year.

The threshold for immediate deduction is as follows:

Purchase date or date asset first used (or installed ready for use) for a taxable purpose	Threshold
1 July 2018 to 28 January 2019	$20,000
29 January 2019 to 2 April 2019 (7:30pm AEDT)	$25,000
2 April 2019 (7:30pm AEDT) to 30 June 2019	$30,000

Significantly, an increase of the threshold to $30,000 may mean that your small business depreciation pool can be written off for the 2018/19 income year.

The entire balance of the pool will be available to be fully deducted in the 2018/19 income year if the pool balance before the calculation of depreciation is less than $30,000.

If you would like to go through the matter with us further, please do not hesitate to contact us.

Martin van der Saag
Partner
T: 02 9984 7774
E: martinv@northadvisory.com.au

Norman Ruan
Accountant
T: 02 9984 7774
E: normanr@northadvisory.com.au

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