In our recent wrap up of the Federal Budget, we flagged the Government’s intention to make changes to the small business instant asset write-off.
On 6 April, Treasury Laws Amendment (Increasing the Instant Asset Write-off) Bill 2019 received Royal Assent.
This Bill makes law the announced changes, being:
- To increase the write-off threshold for small business entities (turnover <$10m) from $20,000 to $25,000 from 29 January to 2 April.
Then from 7.30pm AEST on 2 April 2109:
- To increase access to the write-off to businesses with turnover of less than $50m; and
- To increase the write-off threshold from $25,000 to $30,000.
- To set the end date off the increased write-off as 30 June 2020.
These changes give a great tax advantage to businesses looking to invest in assets between now and June 2020.
If you want more detail on the rules and how you can take advantage of them, please get in touch.