Are you thinking of purchasing assets for your business?
In a recent move, the government has increased the instant asset write-off from $25,000 to $30,000 for businesses with a turnover of less than $50 million.
This means if you purchase an asset (new or second hand) costing less than $30,000 and it is used or installed ready for use from 7:30pm AEDT on 2 April 2019, you can claim a deduction for the business portion up until the cut off on 30 June 2020.
However, different thresholds apply for assets purchased before that date:
- From 29 January 2019 until before 7.30pm AEDT on 2 April 2019, the threshold is $25,000
- Before 29 January 2019, the threshold is $20,000.
You may purchase and claim a deduction for multiple assets provided each asset is under the relevant threshold.
Assets costing $30,000 each or more can’t be immediately deducted, but you can continue to deduct them over time using the small business pool.
When claiming business expenses, ensure it is at the GST exclusive rate if you are registered for GST, not the GST inclusive rate.
If you have any questions about writing off business assets then just get in touch.
