Good news the instant asset write off for 20k is now 30k.
As we have explained before, it is a tax deduction for small business and not a refund.
Small business means you must have turnover of less than $2m.
Small businesses can immediately deduct one or more assets costing less than $20,000 purchased (ready and installed) between 2 April 2019 and 30 June 2020.
The deduction is claimed in the income year in which the asset is first used or installed ready for use.
Late changes by the ATO
The instant asset write-off threshold has increased to $30,000 (up from $1,000). This allows you to immediately deduct the business use portion of a depreciating asset that costs less than $30,000.
The changes apply
- to assets acquired installed and ready to use between 2 April 2019 and 30 June 2020,
- on a per asset basis, so several assets each costing less than $30,000 would qualify,
- net of gst. So $33000 inc gst can qualify as $30000,
- to new and second hand assets.
Can you still write of the asset if it costs more than 30k?
No when an asset costs more than 30k (which can’t be immediately deducted) will continue to be deducted over time using a small business pool.
The low pool value threshold will also increase to $30,000. This means that an immediate deduction is available if the pool balance is less than $30,000 at the end of an income year.
For all your business bookkeeping, Accounting, Bas return and taxation services call Tax Accounting Adelaide on 83374460.
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