Increased Instant Asset Write-Off Threshold to $150,000

Learn more about the actions we’re taking to address the impact of COVID‑19 >

Increased Instant Asset Write-Off Threshold to $150,000

Increased Instant Asset Write-Off Threshold to $150,000

To support business to invest, the Federal Government has increased the instant asset write-off threshold from $30,000 to $150,000. 







Who qualifies?

All business with an aggregated turnover of less than $500 million until 30 June 2020.



Is there a limit on the number of assets that qualify?

The increased threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets. 



When must this be done?

The asset must be purchased ad first used or be installed ready for first use prior to 30 June 2020 in order to qualify.



What about asset purchases after 30 June 2020?

After 30 June 2020, the instant asset write-off threshold is due to revert to $1,000 for small businesses (turnover less than $10 million). However, the accelerated depreciation deduction stimulus measure may apply.

The key features of the accelerated depreciation deduction stimulus measure are:

  • a deduction of 50 per cent of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost;
  • eligible businesses — businesses with aggregated turnover below $500 million; and
  • eligible assets — new assets that can be depreciated under Division 40 of the Income Tax Assessment Act 1997 (i.e. plant, equipment and specified intangible assets, such as patents) acquired after announcement and first used or installed by 30 June 2021. Does not apply to second-hand Division 40 assets, or buildings and other capital works depreciable under Division 43.