$20,000 instant asset write-off extended

The $20,000 instant asset write-off threshold has been extended to 30 June 2019. This means you can continue to claim the cost of new or second-hand assets that are less than the threshold of $20,000.

What does it mean for your business?

Your business must have a turnover of less than $10 million to take advantage of $20,000 instant asset write-off.

Using simplified depreciation rules, you can:

• instantly claim the business portion of most depreciating assets that cost less than $20,000 in your tax return for the relevant income year
• only claim a deduction for the portion of the asset used for business or other taxable purposes and not for the portion for private use.

Assets of more than $20,000 can be put into a small business asset pool where you can claim gradual amounts each year.

What are depreciating assets?

A depreciating asset declines in value over time, such as:

• computers
• electrical tools
• furniture
• curtains
• carpets
• cars.