$30,000 Instant Asset Write-Off Legislation Passed
The Treasury Laws Amendment (Increasing the Instant Asset Write-Off for Small Business Entities) Bill 2019 was passed by the House of Representatives and Senate on 4 April 2019. The amendment increases the threshold of the scheme to $30,000 and expands eligibility to medium-sized businesses with a turnover of less than $50 million.
The latest amendments mean there are now three tiers for the 2019 income year:
- Tier 1: $20,000 threshold for depreciating assets acquired before 29 January 2019
- Tier 2: $25,000 threshold for assets acquired between 29 January 2019 and 2 April 2019
- Tier 3: $30,000 threshold for assets acquired between 2 April and before 1 July 2020
For the first time, the Instant Asset Write-Off at the Tier 3 threshold will also be available to Medium Business entities with a turnover of between $10m and $50m.
For more information on instant asset write-offs click here.