In an attempt to minimise the impact of COVID-19 on Australian businesses, the Australian Government has announced measures
as part of an economic stimulus package to aid businesses during these uncertain times.
One intiative they have implemented is increasing the Instant Asset Tax Write-Off (IAWO) threshold from $30,000 to $150,000 immediately
until the 30 June 2020. Additionally, they have increased the annual turnover threshold from $50 million to $500 million allowing a
greater number of Australian businesses to access the scheme.
The expansion of this incentive has increased the asset threshold from $30,000 to
$150,000. This means you can claim a 100% tax write-off on assets with a purchase
price equal to or less than $150,000 excluding GST.
Under the expansion the incentive applies to both new and second-hand assets
which have been first used, or installed ready for use before the June 30 deadline.
The threshold applies on a per asset basis. This means that you make claims on each
individual asset with a purchase price of up to $150,000 excluding GST. Additionally,
there is no limit to the number assets a business can claim.
In addition to the asset threshold increase, the annual turnover threshold was
also increased from $50 million to $500 million. This allows a greater number
of Australian businesses to access the scheme benefits.
In addition to the above IAWO expansion, the government is also introducing an incentive for the following tax year (FY21)
allowing businesses to claim up to 50% of the purchase price of new depreciable assets as a tax write-off.
If you would like to find out more about how the IAWO works or how it can benefit your business, click the link below
to view the government's fact sheet.
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