On 6 April 2019, the Treasury Laws Amendment (Increasing and Extending the Instant Asset Write-Off) Bill 2019 (the Act) received Royal Assent as Act No. 51 of 2019.

 

The Bill was originally introduced proposed to give effect to the Government’s announcement of 29 January 2019 that:

  • the instant asset write-off for small business entities be extended to 30 June 2020; and
  • the instant asset write-off threshold be increased from $20,000 to $25,000, with effect from 29 January 2019.

 

The bill was amended as progressed through Parliament to give effect to the Government’s 2019-20 Federal Budget announcement that it would:

  • increase the instant asset write-off threshold from $ 25,000 to $ 30,000; and
  • expand the instant asset write-off to make it available to medium-sized businesses (aggregated annual turnover of $ 10 million or more, but less than $ 50 million), in addition to small business entities.

 

The following table summarizes the relevant dates and thresholds for the instant asset write-off:

 

References:

  • Increasing and Extending the Instant Asset Write-Off, Taxation Update – June. (2019), Australia: TaxBanter.
  • ATO, (https://www.ato.gov.au/).

 

This Blog Site has been prepared for the purposes of general information only. Accordingly, before taking any actions based upon such information, we encourage you to consult with the appropriate professionals. VHL Partners Pty Ltd and any of its employees exclude all liability relating to relying on the information and ideas contained within.

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