Increasing and Extending the Instant Asset Write-Off

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On 6 April 2019, the Treasury Laws Amendment (Increasing and Extending the Instant Asset Write-Off) Bill 2019 (the Act) received Royal Assent as Act No. 51 of 2019.

The Bill was originally introduced proposed to give effect to the Government’s announcement of 29 January 2019 that:

• the instant asset write-off for small business entities be extended to 30 June 2020; and
• the instant asset write-off threshold be increased from $20,000 to $25,000, with effect from 29 January 2019.

The bill was amended as progressed through Parliament to give effect to the Government’s 2019-20 Federal Budget announcement that it would:

• increase the instant asset write-off threshold from $ 25,000 to $ 30,000; and
• expand the instant asset write-off to make it available to medium-sized businesses (aggregated annual turnover of $ 10 million or more, but less than $ 50 million), in addition to small business entities.

The following table summarizes the relevant dates and thresholds for the instant asset write-off:

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References:

• Increasing and Extending the Instant Asset Write-Off, Taxation Update – June. (2019), Australia: TaxBanter.
• ATO, (https://www.ato.gov.au/).

Disclaimer

This content is intended for general information in summary form on tax and legal matters at the time of first publication and is not intended to provide, and should not be relied upon in place of appropriate professional advice.  Please consult your tax, legal and accounting advisors before acting or relying on any content provided.