In a move designed to improve cash flow, the government have extended the instant asset write-off threshold of $150,000 for businesses with an aggregated turnover of less than $500 million, to 31 December 2020.
The threshold applies on a per-asset basis, so eligible businesses can immediately write off multiple assets provided each asset costs less than $150,000. The extension will give businesses additional time to acquire and install assets, as they will now have until the end of the year.
Eligible businesses can deduct the full cost of purchases up to $150,000 from the amount of tax they pay in the financial year the asset is purchased, installed and ready for use. Please note however, the depreciation and GST cost limit of $57,581 still applies to luxury motor vehicles.
Legislation to give effect to the extension to the instant asset write-off will soon be introduced.
You can find out more about eligibility requirements here.