The government is loosening the criteria around the Instant Asset Write-off.
The Government is increasing the Instant Asset Write-Off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 30 June 2020. In 2017-18 there were more than 360,000 businesses that benefited from the current IAWO, claiming deductions to the value of over $4 billion.
The Instant Asset Write-off threshold
The higher IAWO threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset
basis, so eligible businesses can immediately write-off multiple assets.
The IAWO is due to revert to $1,000 for small businesses (turnover less than $10 million) from 1 July 2020.
Eligibility
The Government is expanding access so that more businesses can take advantage of the IAWO. The annual turnover threshold for businesses is increasing from $50 million to $500 million. Expanding the threshold
will mean an additional 5,300 businesses who employ around 1.9 million Australians will be able to access the IAWO for the first time.
If you have any questions in regards to the Instant Asset Write-off, please don’t hesitate to give us a call.
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