$25,000 Small Business Instant Asset Write-off

In January, it was announced that the Small Business Instant Asset Write-Off would be increase to $25,000 (currently $20,000) and be applicable until 30 June 2020. Prime Minister Scott Morrison announced that the new law would apply from 29 January 2019, when passed, and apply to all businesses with turnover under $10 million.

While the legislation was introduced into Parliament on 13 February 2019, it was passed on 4 April 2019 – with 18 Government Amendments post the Federal Budget Announcements

As a result, for the 2019 tax year, small and medium businesses ( up to $50 million turnover) will have three tiers of asset thresholds to consider to determine if they are fully depreciable in 2019.

  • From 1 July 2018 to 29 January 2019 assets under $20,000 first used or installed are fully deductible.
  • From 29 January 2019 to 2 April 2019 assets under $25,000 first used or installed are fully deductible.
  • From 2 April 2019 to 30 June 2020 assets under $30,000 first used or installed are fully deductible.

After 1 July 2020 the threshold will revert back to $1,000 for small businesses only. The above has passed both houses and is awaiting royal assent. As it stand this will be law.

Read more at the ATO

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