Instant Asset Write Off

Assets used in business are usually subject to a tax-deductible depreciation write off over their useful life or at rates set-out by the Australian Tax Office.

Assets (including cars) that are fully available for use and used in businesses with an annual turnover of less than $50 million are entitled to claim 100% depreciation at the time of purchase. This benefit is available to assets within the following cost criteria.

The assets can be new or second hand. So, when considering new purchases or improvements to existing equipment, to benefit from the immediate tax benefit make sure to consider some under the $150,000 threshold (excl. GST or up to $65,049 incl GST for cars for FY 2021 subject to the depreciation cost limit).

From 12 March 2020:asset write off

1. Under $150,000 (excl GST) to 31 December 2020

Assets (including cars) that are fully available for use and used in businesses with an annual turnover of less than $10 million are entitled to claim 100% depreciation at the time of purchase. This benefit is available to assets within the following cost criteria:

2. Under $30,000 from 1 July 2019 to 11 March 2020.
3. Under $30,000 (excl GST) from 3 April to 30 June 2019.
4. Under $25,000 (excl GST) from 29 January to 2 April 2019;
5. Under $20,000 (excl GST) from 1 July 2018 to 28 January 2019.

NBC are experts in tax and cloud accounting solutions. We invite you to contact us if you are interested in discovering more ways to maximise the financial benefits for your business.