Increase in Small Business Immediate Asset Write Off

There have been a number of changes to the rates and thresholds for the small business instant asset write off during the last few months.

The first announcement on 29 January 2019 increased the threshold from $20,000 to $25,000 and then a subsequent budget announcement increased the threshold further to $30,000 and included businesses with an aggregated turnover of $50 million.Therefore, the amount which can be instantly deducted is determined by the date on which an asset was installed and ready for use and the aggregated turnover of a business. The applicable thresholds are listed in the table below. 

The current small business asset pooling continues for all businesses with less than $10 million turnover which provides 15% depreciation in the first year and 30% in each subsequent year. For medium sized businesses with less than $50 million turnover, they can along access the instant asset write off for eligible assets but are not able to use pooling for other depreciable assets.

DATE ASSET ACQUIRED & READY FOR USE AGGREGATED TURNOVER THRESHOLD FOR INSTANT ASSET WRITE OFF
1 July 2018 to 29 January 2019 Less than $10 Million $20,000
29 January 2019 to 2 April 2019 Less than $10 Million $25,000
2 April 2019 to 30 June 2020 Less than $50 Million $30,000