Instant Asset Write-Off Extended

Businesses making up to $500 million per year will be allowed to continue writing off newly purchased assets worth up to $150,000 under an extended scheme designed to boost cash flow.

In March, the Federal Government expanded the scope of the Instant Asset Write-Off scheme in the early stages of the coronavirus economic shock.

The scheme changed from allowing businesses making $50 million per year to write off purchases up to $30,000, to businesses making $500 million per year being allowed to deduct purchases worth up to $150,000.

Treasurer Josh Frydenberg said that arrangement, which was due to end on July 1, would remain in place until the end of the year.

He says the extension will cost $300 million and is expected to help about 3.5 million businesses.

“(They) will be able to go and purchase equipment or machinery, tools, up to a value of $150,000 – as many times as they want – and then write it off,” the Treasurer told reporters

The expanded instant asset write-off took effect in March and applies to businesses with annual turnovers of up to $500 million, up from $50 million.

Businesses can benefit from the instant asset write-off multiple times.

More information on the Instant Asset Write Off is available on the ATO Website