29 January 2019
Increase and extension to instant asset write-off for small businesses
From today, the instant asset write-off scheme will be available to small businesses until 30 June 2020 for assets purchased under $25,000 in value.
The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell welcomed the extension of the scheme as well as the increase to the threshold in today’s announcement by Prime Minister Scott Morrison.
“This is good news for small businesses looking to purchase a new or second-hand asset, such as a vehicle, printer or generator.
“The scheme allows small businesses to immediately deduct assets costing less than $25,000 instead of claiming deductions over a number of years and there is no limit on how many assets can be claimed.
“The small business sector represents 99% of all businesses in Australia, so this measure will give small businesses more opportunities to grow and thrive.”
The Treasurer will introduce this legislation when Parliament resumes on 12 February 2019.
Ms Carnell says small and family businesses need to remember that this is a tax deduction, not a rebate. So you need to have sufficient profit to write off the new asset against.
“We will be working with the government, the Australian Taxation Office, industry associations, accountants and bookkeepers to ensure small business knows about this important opportunity,” she said.
To learn more about the claim process, as well as what exclusions apply, visit the Australian Taxation Office website.