Instant Asset Write Off
The Federal Government recently announced The higher Instant Asset Write-Off (IAWO) threshold provides cash flow 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.
Eligibility to use instant asset write-off depends on:
- your aggregated turnover (the total ordinary income of your business and that of any associated businesses)
- the date you purchased the asset and it was first used or installed ready for use
- the cost of each asset being less than the threshold.
The criteria have changed over time so make sure you check whether your business is eligible.
From 1 July 2020 the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.
Businesses with a turnover of $500 million or more are not eligible to use instant asset write-off
We can help you better understand this legislation, and answer questions . Get in touch now and one of our friendly team members can share free, initial advice with you.
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