As part of the Government’s measures to support businesses survive the economic impact of COVID-19, the instant asset write-off (IAWO) threshold amount was increased from $30,000 to $150,000 as of 12th March, 2020.
Initially intended to end on 30th June 2020 and revert back to different, less beneficial depreciation rules from the 1st July 2020; the Federal Government has decided to extend the period up to and including the 31st December, 2020. This proposed extension is currently being processed by the Government, and is yet to be finalised at the time of posting this blog (see here for more information).
This IAWO increase is available to all businesses with an annual turnover of less than $500 million and will help to further support planned investments for around 3.5 million businesses in Australia.
Here are the facts:
We will endeavour to keep you updated on when this extension is confirmed by the Government. In the meantime, if you have any questions or queries relating to the IAWO increase please contact our Accounting team here.