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Federal budget 2019 tax business

Federal Budget 2019 Initiatives: Tax (business)

  • An increase to the instant asset write-off
  • An expansion to the instant asset write-off

Small Business instant asset write-off extended

Effective 2 April to 30 June 2020

The Government announced two changes in the budget in relation to the instant asset write-off for small businesses:

  1. Increasing the instant asset write-off threshold from the proposed $25,000 to $30,000 for small businesses (with aggregated annual turnover of less than $10 million)
  2. Expanding the instant asset write off measure to medium sized businesses with aggregated annual turnover of $10 million or more, but less than $50 million.

This means both small and medium businesses can immediately deduct purchases of eligible assets costing less than $30,000 that are first used, or installed ready for use, from budget night to 30 June 2020.

Medium businesses must acquire these assets after Budget night to be eligible as they have previously not had access to the instant asset write-off.

The $30,000 threshold applies on a per asset basis. This means eligible businesses can instantly write off multiple assets

Federal Budget 2019 threshold table
This article is published by R J Sanderson and Associates Pty Ltd ABN 71 060 299 783. This article contains general information only and is not intended to represent specific personal advice (Accounting, taxation, financial or credit). No individual personal circumstances have been taken into consideration for the preparation of this material. It is recommended that you obtain your own personal professional advice before making any financial or business decision.