The Australian Government have announced the extension of the Instant Asset Write-Off scheme for a further six months, to 31 December 2020.
This is a welcome move by the Australian Government and is one the AADA has been urging Government to deliver for some months.
All other details of the scheme remain the same as does the car limit of $57,581. The ATO have recently advised that the car cost limit for depreciation increases to $59,136 for the 2020-2021 financial year. This is a very modest increase on an arbitrary threshold which AADA will continue to argue holds back the full potential of the scheme and discriminates against one class of asset.
In summary, the Instant Asset Write-Off Scheme:
- Will now continue through to 31 December 2020
- Is for individual or multiple assets, provided the value of each is under $150,000
- Applies to new and second hand assets
- Available to businesses with an annual turnover of less than $500 million.
Dealers are urged to take advantage of the scheme while it lasts and promote it among eligible business customers who will obtain considerable financial benefit.
For more information about the instant asset write-off, including eligibility criteria and the different thresholds, visit ATO’s website.
TheATO has also provided a PDF answering the most common questions about how the instant asset write-off expansion applies to vehicles.