What Business assets could be eligible for the instant write off?

Changes to Instant Asset write off effective 12 March 2020

From 12 March 2020 until 30 June 2020 the instant asset write-off

• threshold is $150,000 (up from $30,000)
• eligibility range covers businesses with an aggregated turnover of less than $500 million (up from $50 million)

The criteria have changed over time so make sure you check whether your business is eligible:

• Small businesses with a turnover of less than $10 million
• Medium businesses with a turnover from $10 million to less than $50 million
• Medium and large businesses with a turnover from $50 million to less than $500 million

From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $1 million and the threshold will be $1,000.

Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off.

Excluded assets

You must use the general depreciation rules for the following depreciating assets – as they are specifically excluded from the simplified depreciation rules:

• assets that are leased out, or expected to be leased out, for more than 50% of the time on a depreciating asset lease
• assets you allocated to a low-value assets (pool) before using the simplified depreciation rules
• horticultural plants including grapevines
• software allocated to a software development pool (but not other software)
• capital works deductions.