Rochdale - Budget Update – Instant Asset Write-Off Thresholds Now Law

Budget Update – Instant Asset Write-Off Thresholds Now Law

In our blog on the Federal Budget, it was announced that there was plans to increase the instant asset write-off threshold to $30,000  (from $25,000) to June 2020 and expanding access to medium-sized businesses with an annual turnover of less than $50 million to help them reinvest in their business, employ more workers and grow. 

It is great news to report that The Treasury Laws Amendment (increasing the instant asset write-off for small business entities) Bill 2019 received Royal Assent on 6 April 2019 and is now law. 

These changes are great tax advantage to businesses looking to invest in assets between now and June 2020.

The thresholds are therefore now:

Date range Threshold for each asset
7:30pm (AEDT) 02/04/2019 to 30/06/2020 $30,000
29/01/2019 to before 7.30pm (AEDT) 02/04/2019 $25,000
7.30pm (AEST) 12/05/2015 to 28/01/2019 $20,000
01/01/2014 to prior to 7.30pm (AEST) 12/05/2015 $1,000

A taxpayer will be a small business taxpayer if (in general) they: 

  1. Carry on a business; and
  2. Have an aggregated turnover of less than $10 million.

A taxpayer will be a medium business taxpayer if (in general) they: 

  1. Carry on a business; and
  2. Have an aggregated turnover of less than $10 million.

Contact us if you want more detail on the rules and how you can take advantage of them.

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