Instant Asset Write-Off – changes now legislated
January 16, 2020
The government has announced an increase for the instant asset write-off program for small businesses from $20,000 in 2018 to $30,000
From 7.30pm (AEDT) on 2nd April 2019, you can immediately deduct the business portion of most depreciating assets costing less than $30,000 each (the instant asset write-off threshold).
The change will make a huge difference to millions of hardworking Australians, with about 3.4 million small businesses eligible for the deduction. The eligible businesses will be allowed to make a deduction every time an asset under the threshold is purchased.
For clarification: Let’s say you’re a builder, and it’s time to buy a new ute for work. Under 2018 rules, your purchase had to be limited to $20,000 — and not a cent over — to qualify for the instant asset write-off. So you’re shopping for a new ute that will carry not just you, but your colleagues, maybe an apprentice and a heavy duty tray. The cheapest four-door ute on the market in Australia right now wouldn’t have qualified under 2018 rules.
Already, more than 350,000 businesses have taken up the instant asset write-off, and now, even more will have the chance to do so.
It’s the kind of policy change that feels like it is actually designed to work in the real world and here at Mosman Toyota, many of our past customers have already contacted us to take advantage of this business initiative.
If you are an eligible business and would like to capitalise on the recent increase to the ‘instant asset write-off’, please contact us at Mosman Toyota as we currently have HiLux Workmates and selected passenger vehicles available for immediate delivery.
Take advantage of the great End Of Financial Year offers on now until June 30th 2019.
NOTE: Information provided here is general in nature and not deemed advice. For more information on the instant asset write-off visit the Australian Tax Office website or speak to your accountant or a qualified tax professional.