The $150k instant asset write-off has been extended

The $150k instant asset write-off scheme has been extended until 31st December 2020. 

After the economic devastation caused by COVID-19, the Federal Government have just announced additional changes to the instant asset write-off scheme. 

In addition to the increase in instant asset write-off threshold, the Federal Government have just announced that businesses may be eligible for a six-month extension until the 31st December 2020.

Without this extension, the increased instant asset write-off amount of $150,000 would have regressed back to the $1,000 threshold on the 30th June 2020 and only businesses with less than a $10 million turnover would be eligible.


What does this mean for businesses?

The proposed extension has been implemented in order to encourage businesses to continue making investments in 2020 despite the uncertain economic circumstances brought about by the Coronavirus pandemic.

Because the instant asset threshold applies per-asset, businesses can invest in multiple assets provided they each individually cost less than the threshold, $150,000.

Businesses will also benefit from improved cash flows by bringing forward tax deductions for eligible investment expenditure.

The extension will allow businesses additional time to acquire new assets up until the 31st December 2020.


150k Instant asset write-off extension criteria

The Federal Government have indicated that the instant asset write-off extension will be available to over 3.5 million businesses Australia-wide provided they meet these criteria:

  • An aggregated turnover of less than $500 million
  • The cost of each asset is less than the instant asset threshold – $150,000
  • The asset(s) have been purchased and used or installed for use before 31st December 2020

You can find more information on the changes to the instant asset write-off threshold or chat to the team at Simmons & Livingstone for more information regarding the instant asset write-off six-month extension. 

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