INSTANT ASSET WRITE-OFF
Looking for new farm machinery and equipment for your business?
Under the instant asset write-off legislation, eligible businesses can:
- immediately write off the cost of each asset that costs less than the threshold.
- claim a tax deduction for the business portion of the purchase cost in the year the asset is first used or installed ready for use.
- be used claim for both new and second-hand assets. Some exclusions and limits apply.
From 12 March 2020 until 31 December 2020, the instant asset write-off:
- threshold amount for each asset is $150,000 (up from $30,000).
- eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).
From 7.30pm AEDT on 6 October 2020 until 30 June 2022, temporary full expensing allows a deduction for:
- the business portion of the cost of new eligible depreciating assets for businesses with an aggregated turnover under $5 billion or for corporate tax entities that satisfy the alternative test
- the business portion of the cost of eligible second-hand assets for businesses with an aggregated turnover under $50 million
- the balance of a small business pool at the end of each income year in this period for businesses with an aggregated turnover under $10 million.
Visit ato.gov.au for more information and full terms and conditions.