The instant asset write-off threshold has been increased from $30,000 to $150,000 and expanded access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million)—in large part to help businesses withstand and recover from the economic impact of the coronavirus.
This applies from 12 March 2020 until 30 June 2020, for new or second‑hand assets first used or installed ready for use in this time frame.
The higher IAWO threshold provides cashflow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write off multiple assets.Advertisement
The IAWO is due to revert to $1000 for small businesses (turnover less than $10 million) from 1 July 2020.
The Government is expanding access so that more businesses can take advantage of the IAWO. The annual turnover threshold for businesses is increasing from $50 million to $500 million. Expanding the threshold will mean an additional 5300 businesses who employ around 1.9 million Australians will be able to access the IAWO for the first time.