Claiming the $20,000 instant asset write-off

The Government has confirmed that they will extend the Small Business Instant Write-off for assets costing less than $20,000 ($19,999 or less) to 30 June 2019 for businesses with an annual turnover of less than $10 million.

Eligible businesses can take advantage of the instant asset write-off for the business portion of their assets, providing they bought and installed the assets for less than $20,000 each.

To avoid depreciation and asset underclaiming:

  • Ensure your accountant applies the simplified depreciation rules if this is the first year you are eligible (previously had a turnover greater than $2million but less than $10 million).
  • Always ensure to write-off for tax purposes assets costing less than $20,000 each ($19,999 or less) and were bought, used and installed ready to use before 30 June 2019.
  • Pool the majority of other depreciating assets that cost $20,000 or higher and claim a 15 per cent deduction in the first year and a 30 per cent deduction every following year.
  • Write-off the small business pool balance provided it is less than $20,000, before applying any other depreciation deduction and make sure to only claim a deduction for the portion of the asset that is used for business or other taxable purposes.

Of course, where you are a client of Holmans, we look after all of this for you.

Need help and want more information? Call Holmans for assistance on (07) 5430 7600 or send us an email.