Instant Asset Write-Off Increased to $25k

Prime Minister Scott Morrison pledged yesterday to increase the small business instant asset write-off to $25,000 from $20,000.

Remember, if you buy an asset and it costs less than $25,000 (new or second hand), you can write off the business portion in your tax return.

The write-off will be available for small businesses with an annual turnover of less than $10 million and will now apply until 30 June 2020 (ie extending the scheme for another year).

The government will be seeking to legislate the change when Parliament resumes on 12 February.

Mr Morrison’s office said, “The $25,000 instant asset write-off will improve cash flow by bringing forward tax deductions, providing a boost to small business activity and encouraging more small businesses to reinvest in their operations and replace or upgrade their assets.”

You can contact us if you have any questions about the instant write-off rules.