- The Government is increasing the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million (up from $50 million) until 31 December 2020.
- Companies with an annual turnover below $500 million are eligible.
- The deduction can be claimed through annual tax return process.
- Eligible businesses may be able to claim an immediate deduction for new and used motor vehicles designed to carry a load of less than one tonne and fewer than nine passengers, subject to business use, where the cost is less than $57,581 excluding GST for the 2019-20 income tax year and $59,136 for the 2020-21 income year.
- For cars, the instant asset write-off is limited to the business portion of the car limit. For example, the car limit is $57,581 for the 2019-20 income tax year. If you use your vehicle for 75% business use, the total you can claim under the instant asset write-off is 75% of $57,581, which equals $43,186. The excess cost of the car cannot be claimed under any other depreciation rules.
- For other motor vehicles, e.g. commercial vehicles not principally designed to carry passengers, eligible businesses may be able to claim an immediate deduction where the cost is up to $150,000 excluding GST.
- The motor vehicle must be first used between 12 March 2020 and 31 December 2020.