Small business instant asset write-off: Govt to increase to $25,000
In a speech on 29 January 2019, the Prime Minister announced that the Government will increase the instant asset write-off already available for small businesses from $20,000 to $25,000. Mr Morrison also said that the instant write-off will be extended by 12 months to 30 June 2020. (It was due to revert to $1,000 on 1 July 2019.)
The measure is expected to benefit more than 3 million eligible small businesses with a turnover of up to $10 million a year to access the expanded accelerated depreciation rules for assets costing less than $25,000. This means that, from 29 January 2019, small businesses can instantly deduct each and every asset under $25,000, according to Mr Morrison.
The increased threshold will be effective from 29 January 2019. The Government said it will introduce legislation when Parliament resumes from 12 February 2019.