From the Australian Taxation Office’s Small Business Newsroom:
- Increased thresholds to support your business
31 March 2020
The government's new measures to help businesses withstand and recover from the economic affect of COVID-19 recently became law.
From 12 March 2020 businesses with an aggregated turnover of less than $500 million can access these two measures.
- Enhancing the instant asset write-off:
- The threshold amount for each asset is $150,000 (up from $30,000).
- This applies to assets first used or installed ready for use from 12 March 2020 until 30 June 2020.
- Businesses can claim an immediate deduction (business portion only) for multiple assets, new or second hand, provided each asset costs less than $150,000.
- Other thresholds and turnovers apply before this date.
- Backing business investment:
- Also known as accelerated depreciation, this measure lets you claim deductions on certain new depreciating assets at an accelerated rate.
- The asset must be a new depreciating asset that you acquired and first used or installed ready for business use from 12 March 2020 until 30 June 2021.
- Your business must not have already applied other depreciation deductions or the instant asset write-off to the asset.
- Remember, registered tax agents can help you with your tax.
- Find out about: