What is it?
The instant asset write-off allows businesses to claim an immediate tax deduction for the business portion of the cost of an asset in the year it was first installed or used.
The instant asset write-off can be used for multiple assets, assuming the cost of each asset is less than the applicable threshold. Both new and second-hand assets may be immediately claimed.
Eligibility
The following factors determine whether you may claim the immediate tax deduction via the instant asset write-off rules, and which year the deduction should be applied to:
- Your aggregate turnover.
- The date the asset was purchased.
- When the asset was first used or installed ready for use.
- The cost of the asset being less than the applicable threshold.
Thresholds
The instant asset write-off was suspended from 1 July 2021 to 30 June 2023, while temporary full expensing was available.
ATO page available here.
For more information or assistance please contact Infinite Accounting Solutions on 02 9899 4730 or via the contact page at www.ias-ca.com.au.