Instant Asset Write-Off Extended
written by Darren Hagarty
The Instant Asset Write-Off Scheme was due to end on 30 June 2020, however the Government has announced that it will now remain in place until 31 December 2020.
Under the scheme, a business can claim an immediate deduction for the business portion of the cost of an asset in the year the asset is first used or installed ready for use.
The Instant Asset Write-off can be used for multiple assets, as long as the cost of each individual asset is less than the relevant threshold. It can also be used for either new or second-hand assets.
There is one important limitation of the scheme, namely cars. If a car is purchased (a passenger vehicle, except a motor cycle or similar vehicle, designed to carry a load less than one tonne and fewer than nine passengers) for a business, the instant asset write-off is limited to the car limit of $57,581 for the 2019–20 income tax year.
Legislation will be introduced into Parliament to give effect to the changes.
If you have any questions, please don’t hesitate to contact your PT Partners advisor.
Darren Hagarty is a Director of PT Partners.