Massive Increase to The Instant Asset Write-off Tax Deduction Scheme
                     You only have until June 30 to take advantage of the massive increase in the 
instant asset write-off scheme. That means if you want to get bigger business 
tax deductions this financial year, you need to buy any new business assets 
before June 30. It’s important to understand that the instant asset write-off 
scheme has been massively enhanced for this financial year because the 
fede ral government wants to help minim ise the impact of the coronavirus on the 
Australian economy.
What is the Instant Asset Write-Off 
Scheme?
The instant asset write-off scheme allows you to  write off the entire cost of new 
business assets that you buy as a tax deduction. You can do this provided that:
1) the value of the asset is below a threshold value, and
  
2) your annual business turnover is below a threshold value.
What are The Eligibility Requirements for 
The Instant Asset Write-Off Scheme?
Your business will be eligible for the instant 
asset write-off scheme if:
1) you buy any asset that is valued at less than 
$150,000 between now and the end of this 
financial year, and
2) your annual business turnover is less than 
$500 million.
The $150,000 threshold asset value applies to 
every asset that you buy, not to the combined 
value of the assets.  For example, let’s assume 
that you buy new factory machinery worth 
$120,000 and a new truck worth $100,000. You 
can immediately write-off the value of both 
assets because they each cost less than 
  
$150,000, even though their combined value is 
$220,000.
What Business Assets Can I Write off Under 
the Instant Asset Write-of Scheme?
Examples include:
    . Office equipment,
    . Factory machinery, and
    .  Usiness vehicles (for example, cars  or trucks).
What About Buying Business Assets Valued 
at More Than $150,000?
The federal government has also announced accelerated tax deductions for 
depreciation for both the 2019/2020 and 2020/2021 financial years. This initiative 
is designed to help businesses who buy larger-value assets that can’t be written 
off under the instant asset write-off scheme.
If your business:
1)  has an annual turnover of less than $500 million, and
2) you buy any asset costing more than $150,000 between now and the end of 
the 2020/2021 financial year,
then you can immediately write off 50% of each asset’s cost as depreciation on 
your business tax return.
  
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