The Australian Taxation Office (ATO) has provided information about how the instant asset write-off expansion applies to vehicles. You can now download a PDF (143KB) answering some common questions, including:
- Does the instant asset write-off threshold apply equally to all vehicles?
- Can I claim the full cost if I use my vehicle for business and private use?
- When working out the carrying capacity of my vehicle, does it include passengers and fuel weight?
- I’ve purchased a vehicle. What do I claim when I’ve traded-in a vehicle as part of the transaction?
- Can I claim under the increased instant asset write-off if I’ve ordered and paid for my vehicle by 30 June 2020, but not yet received it?
- Is GST included in the cost of the vehicle?
From 12 March 2020 until 30 June 2020, the instant asset write-off threshold for each asset has been increased to $150,000 and eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million.
From 1 July 2020, the instant asset write-off threshold will revert to $1,000 and only available for small businesses with a turnover of less than $10 million.
For more information about the instant asset write-off, including eligibility criteria and the different thresholds, visit ato.gov.au/instantassetwriteoff.