The Treasury Laws Amendment Bill 2018 has now been passed through Parliament extending access to the small business instant asset write-off for assets purchased costing less than $20,000. The extension of the increased threshold is until 30 June 2019. From 1 July 2019, the instant asset write-off threshold will revert back to $1,000.
For the 2018-19 year, businesses are eligible to access this concession if;
- Business turnover is less than $10 million
- The asset was first used or installed ready for use in the income year it is being claimed in
For small businesses, assets costing more than $20,000 will need to be deducted using the small business general pool which claims 15% of the cost as depreciation in the first year and 30% of the cost in subsequent years When the balance of the pool is less than $20,000 at the end of an income year, the balance can be written-off and claimed as a deduction.
Should you wish to understand the details of the concession further, we encourage you to reach out to your advisor here at Quantum Partners.
