Instant asset write-off limit now $30k but be aware of the purchase date

For Business | Tax
April 5, 2019

Good news! The instant asset write-off limit has now been increased to $30,000, when certain conditions are met. While this is wonderful news for small businesses, it also means there is a more complex system to navigate for 18/19 financial year. We’ve broken down the basics for you here.

Timing is critical in claiming these deductions. Some specifics of the assets and timing are listed below.

There will now be three tiers in 18/19 financial year:

For businesses with a turnover of up to $10 million:

  • $20,000 for purchases made before 29 January 2019.
  • $25,000 for purchases made between 29th January 2019 until 7:30pm (AEDT) April 2nd, 2019.

For businesses with a turnover of up to $50 million:

  • $30,000 for purchases made & received, first used or installed and ready for use – between 7:30 pm 2nd April, 2019 and 30th June 2020.

Good to know:

  • An asset can be new or second hand;
  • A deduction can only be claimed to the extent that an asset is used in the business.
  • The total price including any accessories necessary for operation must be less than above indicated limited (excluding GST for GST registered entities and including GST for entities not registered for GST);
  • An asset needs to be purchased, installed and ready for use by the times indicated above for each tier;
  • Businesses with a turnover between $10 million and $50 million will also have access to the instant asset write off for assets costing less than $30,000 between 7:30pm April 2nd, 2019 and 30 June 2020. Such businesses do not have access to this concession for assets purchased before this time.


Get in touch if you have some questions about instant asset write-off this year.

Image credit: Photo by freestocks.org on Unsplash

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