COVID-19: Instant asset write-off extended to 31 December 2020

The government will extend the $150,000 instant asset write-off for six months to 31 December 2020.    

Australian businesses with annual turnover of less than $500 million will be able to take advantage of this extended time frame to invest in assets to support their business as the economy reopens and coronavirus health restrictions continue to ease. Legislative changes will be made to give effect to this measure.

Broadly, the depreciating asset instant asset write-off threshold will be increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 31 December 2020. 

The measure applies to both new and second-hand assets first used or installed ready for use in the period beginning on 12 March 2020 (i.e., the date on which this measure was announced) and ending on 31 December 2020.

From CAP TAX News – 11 June 2020 / Edition 22