In its latest move to counteract the economic fallout of COVID-19, the Federal Government will extend its $150,000 instant asset write-off until the end of the year. Originally due to expire 30 June 2020, the instant asset write off is now available until 31 December 2020. The bill was passed by both houses on 18 June 2020 and received Royal Assent on the 19th of June 2020.
The instant asset write-off scheme enables businesses to immediately deduct the value of an asset in the year of purchase, instead of claiming deductions over several years. Businesses can claim multiple assets.
The asset must cost less than the $150,000 threshold and be first used or installed ready for use for a taxable purpose by 31 December 2020.
We will continue to keep you up to date on any further developments.
If you have any queries about the Instant Asset Write-Off, please do not hesitate to contact the BCP team.