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Instant Asset Write-Off Extended

Good news! This month the government announced that the Instant Asset Write-off has been extended for six months, taking the initiative to 31 December 2020. Australian businesses with less than $500 million annual turnover will be able to take advantage of the write-off and invest in assets to support their business. This government initiative is designed to help the economy reopen and boost economic growth. The instant asset write-off applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided they each cost less than $150,000.

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
– New and second-hand assets.

Changes this year

From 12 March 2020 now through to 31 December 2020 the instant asset write-off details are below.

• threshold amount for each asset is $150,000 (up from $30,000)
• eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).

Are you eligible?

Your eligibility for the write-off depends on:

• your aggregated turnover
• the date you purchased the asset
• when it was first used or installed ready for use
• the cost of the asset being less than the threshold ($150,000)

You can find more information on which assets can you claim as an immediate deduction here. If you have any major assets to purchase for your business’ future growth, and you have the cash flow available, before June 30 is the time to purchase! Please feel free to get in touch with us so we can walk you through the different thresholds, exclusions, and limits.

Contact your local bookkeeper

The information and insight a bookkeeper provides goes a long way to helping you make smart business decisions, especially when it comes to End of Financial Year. Our team of friendly bookkeepers are passionate about supporting small businesses with their financial and accounting needs.

Whether you’re just after some financial advice, bookkeeping tips, basic bookkeeping services or assistance selecting an accounting software package such as MYOB, Xero, Quickbooks Online or Receipt Bank, we can work through it together.

See below for our bookkeeper locations; if you’d like to ask a question, please feel free to use the form below and we’ll be in touch with you soon.

Our Bookkeepers

Justine Day: Southern Highlands / Bowral Bookkeeper
Amanda Graham: Southern Highlands / Bowral Bookkeeper
Petra Austing: Southern Highlands / Bowral Bookkeeper
Karin Evans: Gold Coast Bookkeeper
Pru Hall: Wollongong Bookkeeper
Jackie Short: Canberra Bookkeeper