The COVID-19 Coronavirus Economic Stimulus Package Has Broadened The Range Of Equipment Eligible For The Instant Asset Write-off
June Update: The $150k Instant Asset Write Off has now been extended until 31 December 2020. See below for details.
In light of the COVID-19 Coronavirus, changes have now been made to the Instant Asset Write-off. Australian businesses can claim an immediate deduction for assets they purchase, including new and used equipment, where the cost is less than $150,000 ex. GST ($165,000 inc. GST), subject to business use. The previous threshold for this incentive was $30,000 ex. GST ($33,000 inc. GST).
This change makes the incentive applicable to an even wider range of equipment options – such as Tractors – being eligible for immediate deduction. This change applies from 12 March 2020, and was originally set to end 30 June 2020. On 9 June, however, the Government announced a six month extension until 31 December 2020.
Additionally, the instant asset write-off can now be claimed by businesses with an aggregated annual turnover of less than $500 million, up from the previous $50 million threshold.