The instant asset write-off allows you to write off the value of eligible assets in the year they were purchased – provided they were also first used (or installed for use) in the income year you are claiming for.
How much you can claim is set by the instant asset write-off threshold. As part of the government’s COVID-19 tax relief initiatives, the threshold amount for each asset has been increased to $150,000 for the period 12 March 2020 to 30 June 2020 (up from $30,000). During the same period, businesses with an annual turnover of under $500 million are eligible for the write-off, an increase from $50 million.
This is the latest in a series of threshold increases, applicable to assets purchased as early as July 2012. These can be checked on the ATO website.
There’s no denying the COVID-19 pandemic has caused major disruptions for businesses around the country. But with the end of the financial year approaching, it’s more important than ever to be prepared and understand your obligations.
Use this free checklist to help tick off your end of financial year tasks.
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*Based on 958 meters switched between 1 July 2019 to 3 April 2020