Recently the instant asset write-off threshold has been increased and extended to 30 June 2019 which is exciting news for small business owners.
This became law as at 6 April 2019 – the threshold increased from $20,000 to $30,000 in stages.
Purchase date or date first used (or installed ready for use) for a taxable purpose:
|1 July 2018 to 28 January 2019||Threshold $20,000|
|29 January 2019 to 2 April 2019 (7:30pm AEDT)||Threshold $25,000|
|2 April 2019 (7:30pm AEDT) to 30 June 2019||Threshold $30,000|
This means that an asset that costs less than the threshold relevant at the date of purchase can be written off in your tax return for the relevant income year.
Assets that cost more than the threshold relevant at the date of purchase can’t be immediately deducted. They will continue to be deducted over time.
Focus Accountants can help you understand deductions and help with your tax return needs.