Eligible businesses with aggregated turnover from $10 million to less than $500 million may be able to claim a full deduction for new and second-hand assets. Assets need to cost less than $150,000 under the existing Enhanced Instant Asset Write-off rules. The asset must be first acquired between 2 April 2019 and 31 December 2020 and first used or installed ready for use from 12 March 2020 to 30 June 2021.
Eligible businesses with aggregated turnover of less than $10m can also claim a full deduction for new and second-hand assets that cost less than $150,000 under the existing Enhanced Instant Asset Write-off rules. Assets must be first be acquired from 12 May 2015 and used or installed ready for use between 12 March 2020 and 30 June 2021.
You can buy more than one vehicle or piece of equipment, as long as each individual asset costs less than $150,000. You may only claim the portion of the asset that you use for business, not personal use. It's important to understand that while you may only claim the taxable purpose portion as a deduction, the entire cost of the asset must be less than $150,000. Not every purchase will qualify, so you'll need to seek your own independent taxation advice before buying.
To understand eligibility, view case studies and other existing details on Instant Asset Write Off, read the Government’s write-off asset support or the Australian Taxation Office’s (ATO) information.
Speak to your accountant or tax advisor to confirm your business and asset eligibility on the available schemes.