Are you eligible for a $150,000 instant asset write-off?

By Samantha Cordell | May 21, 2020

Instant Asset Scheme

The Federal Government recently announced the decision to bring forward the instant asset write-off scheme and to increase the threshold from $30,000 to $150,000. What does this mean for small businesses? Good things if you’re in need of upgrading or adding new assets for the organisation.

Small business instant asset write-off scheme

An instant asset write-off allows small businesses to claim immediate deductions (up to a limited amount) for new or second-hand plant and equipment asset purchases such as vehicles, tools and office equipment. 

Note: On 9 June 2020, the government announced it will extend the $150,000 instant asset write-off until 31 December 2020 (previously 30 June 2020). This proposed change is subject to the parliamentary process and is not yet law.

The initiative has been around since 2015 and is set to end 31 December 2020. The eligibility criteria and threshold have changed over this time and we recommend you check your business's eligibility.


Changes from 12 March 2020

These changes have been introduced as a means of stimulating the economy in the face of the COVID-19 pandemic.

From 12 March 2020 until 31 December 2020 the instant asset write-off:

  • threshold amount for each asset is $150,000 (up from $30,000),
  • eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).

Note, assets bought between 2 April 2019 until 11 March 2020 will qualify for an instant asset tax write-off of $30,000.


Take advantage before 30 June 2020

If your business falls within this threshold, we strongly recommend you talk to your accountant on how you can leverage the instant asset write-off scheme before 31 December 2020 (previously 30 June 2020). Eligible assets can include PCs, Servers, Phone Systems or any other hardware you may require to keep your business running smoothly.

For more information on the scheme visit the Australian Tax Office website.


How can Diamond IT help?

Our Business Technology Managers (BTMs)  and Technology Consulting team are specialists in improving your IT infrastructure and are ready to speak with you. Contact our team on 1300 307 907 today.



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About Samantha Cordell
Samantha Cordell

Group Marketing Manager @ Diamond IT - Samantha (Sam) fell into the IT Industry after studying a combination of computer science and marketing at Uni, starting in Operations with the now decentralised Cabletron Systems. Over the next 20 years Sam undertook various marketing roles within Intel, Microsoft and Cisco Systems before moving to Newcastle for a sea-change working for Wine Selectors. “Not able to stay away from the IT Industry I jumped at the chance to join the team. I am excited to drive the marketing strategy for Diamond IT’s range of Technology Solutions."