Extending the Instant Asset Write-Off
On 9 June, 2020, the government announced it will extend the $150,000 instant asset write-off for six months until 31 December 2020. This proposed change is subject to the parliamentary process and is not yet law.
Currently, Australian business with annual turnover of less than $500 million are able to take advantage of the asset write-off until 30 June 2020. Under the proposed changes, this will be extended until 31 December 2020.
If you’ve purchased or are planning to purchase assets for your business, you may be eligible to claim an immediate deduction for assets less than $150,000.
Checklist:
- Check if you’re an eligible business
- Both new and second-hand assets can be claimed, provided each asset costs less than $150,000
- Assets must be first used or installed ready for use between 12 March and 30 June 2020
- A car limit applies to passenger vehicles. The limit is $57,581 for the 2019-2020 income tax year
- If your asset is for business and private use, you can only claim the business portion
- Different eligibility criteria and thresholds apply to assets first used, or installed ready for use, prior to 12 March 2020.
If you have any concerns or would like more information or assistance on the above, please speak to your MNH Advisory Services team member.
Resources:
https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/
https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Backing-business-investment—accelerated-depreciation/
https://ministers.treasury.gov.au/ministers/josh-frydenberg-2018/media-releases/extending-instant-asset-write
https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/?anchor=Exclusionsandlimits#Exclusionsandlimits
You are receiving this email as you are a client of MNH Advisory Services Pty Ltd. The information (including taxation) contained within this document is of a general nature only and neither represents nor is intended to be advice on any particular matter.