Extension and increase for instant asset write-off | North Advisory

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    Extension and increase for instant asset write-off

    Posted by Northadvisory on April 24, 2019

    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. Read more business accounting articles.

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

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