Extended for another 6 months
Businesses earning up to $500 million income will be allowed to write off newly purchased assets up to $150,000 until 31st December 2020.
Previously the instant asset write off was to cease at 30th June 2020. However, the Government has allowed eligible businesses a 6-month extension. Therefore, for any assets acquired up to a value of $150,000 where the asset is installed and ready for use before 31st December 2020, eligible business can claim a full write off of the cost of the asset, instead of writing it off over several years under the depreciation rule.
As a reminder, another stimulus measure originally introduced by the Government allows businesses with turnover of under $500M per annum to accelerate the rate of depreciation on new assets purchased prior to 1 July 2021 that do not otherwise qualify for the instant asset write-off. The accelerated rate of depreciation allows the business to claim a deduction equal to 50% of the purchase price of the asset immediately with the balance of the purchase price then being depreciable based on the effective life of the asset.