12 Feb Instant asset write-off threshold increased to $25k
The government has recently increased the threshold for the instant asset write-off to $25,000. The increase looks to entice the small business sector ahead of the next federal election.
Announced last week, Prime Minister Scott Morrison pledged to increase the small business instant asset write off by $5,000, now $25,000 instead of $20,000.
The write-off will be available until June 30th, 2020, for small businesses with an annual turnover of less than $10 million.
The government is seeking to legislate the change later today when Parliament resumes.
“The $25,000 instant asset write-off will improve cash flow by bringing forward tax deductions, providing a boost to small business activity and encouraging more small businesses to reinvest in their operations and replace or upgrade their assets.” Mr Morrisons office told Accountants Daily.
The government’s decision to raise the threshold comes recently after Labor announced it would introduce the Australian Investment Guarantee, a permanent feature which will allow businesses to immediately deduct 20% of any new eligible asset worth more than $20,000.
If you want to understand how this specifically impacts your business, speak to your accountant, or contact us at 8223 3308