Good news: small business instant asset write-off increased

It’s hard to believe around half of Australia’s business owners are still not aware of the small business asset write-off that was introduced in 2015. The instant asset write-off allows small businesses (with an annual turnover of less than $10 million) to claim immediate deductions now of up to $30,000 excluding GST for new or second-hand asset purchases such as vehicles, tools and office equipment. Assets must be used for income-generating purposes and must be bought or installed for use in the income year you’re claiming for, or they cannot be claimed as a one-off deduction. So, it makes sense to start planning for any business purchases before 30 June this year. The incentive has proved so popular that the Federal Government has passed legislation increasing the threshold from $20,000 to $25,000 between 29 January 2019 and 2 April 2019. It is then increasing to $30,000 from 2 April 2019 up until 1 July 2020.

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