Instant asset write-off threshold raised to $30,000 for EACH asset

There have been changes to the instant asset write-off.

The instant asset write-off threshold has increased to $30,000 for EACH asset from 7.30pm (AEDT) 2 April 2019 and the instant asset write-off has been extended to 30 June 2020.

If you are a small business (with a turnover of less than $10 million), you can immediately deduct the business portion of most assets that each cost less than $30,000 (the instant asset write-off threshold) if they are first used or installed ready for use from 7.30pm (AEDT) 2 April 2019 to 30 June 2020.

However, if the asset was first used or installed ready for use from 29 January 2019 until 7.30pm (AEDT) 2 April 2019 you can still immediately deduct the business portion of most assets costing less than $25,000 each. Before 29 January 2019 the relevant threshold is $20,000.

Businesses with a turnover from $10 million to less than $50 million may now be eligible for the instant asset write-off for assets purchased for less than $30,000 each from 7.30pm (AEDT) 2 April 2019 to 30 June 2020. For assets purchased for $30,000 or more, the general depreciation rules must be used.

I you are looking at finance of an asset that qualifies for an instant write off then the monthly payment would be approximately $601 per month over 60 months giving you a very cashflow friendly solution this financial year.