$30,000 Instant Asset Write-Off Before 1 July 2020
Considering the purchase of new assets for your business?
If you are a medium-sized business (i.e. have a turnover between $10M and $50M) or a small business, you are entitled to take advantage of the $30,000 instant asset write-off for the 2020 financial year.
The best news is that this write-off is not complicated! The applicable rules are as follows:
- The asset must be first purchased and first used or installed ready for use before 30 June 2020.
- There is no limit on the number of assets that can be claimed, and the threshold applies to each asset whether its new or second hand. For example, before year end a business purchases a new motor vehicle for $24,000 and then a second-hand trailer for $10,000. The business can write-off both purchases as each asset is under the $30,000 threshold.
- Assets costing more than $30,000 or more cannot be written off (in whole or in part) and general depreciation rules will apply.
While the threshold is due to be dropped down to $1,000 on 1 July 2020, its unpredictable history suggests anything could happen. So, the count-down is on to utilise this generous benefit before 1 July 2020. If you wish to discuss the above, including potential/recent purchases, or to see how this deduction can best benefit your business, please do not hesitate to contact one of the Cordner Advisory team on (07) 5504 5700.