Are you a business owner that purchases assets primarily for business use?

Are you aware of the increased amount of claiming an instant asset write off for newly purchased assets, for the 2019 income year, be it brand new or second hand?

Using the instant asset write-off, you can claim a deduction for each asset that costs less than the threshold that applies when the asset was first used or installed ready for use.

 

Small Businesses with less than $10 million turnover

If you are a small business owner with a turnover of less than $10 million a year, the thresholds that apply are as follows:

Date Purchased

Threshold for Instant Write off

From 7.30pm (AEST) on 12 May 2015 until 28 January 2019

Depreciating assets that costs less than $20,000 each

From 29 January 2019 until before 7.30pm (AEDT) 2 April 2019

Depreciating assets that costs less than $25,000 each

From 7.30pm (AEDT) on 2 April 2019 until 30 June 2020

Depreciating assets that costs less than $30,000 each

 

Businesses with $10 million to less than $50 million turnover

If you are a business owner with an annual turnover of $10 million to less than $50 million a year, you may be eligible to claim an instant asset write off. However, this only applies to assets that costs less than $30,000 each purchased and used, or installed ready for use, from 7.30pm (AEDT) 2 April 2019 to 30 June 2020.

 

If you would like further clarifications about the above matter, call our office on (02) 4732 3844, and one of our experienced accountants will be happy to assist.