$150K Instant Tax Write Off for Small Businesess
Author: Harry Nguyen Date Posted:11 May 2023
- The instant asset write-off is a tax deduction that allows eligible businesses to claim an immediate deduction for the cost of eligible assets, such as equipment, tools, and vehicles.
- The scheme is designed to help small businesses invest in assets that can improve their operations, without having to wait for the assets to be depreciated over time.
- The deduction can be claimed in the same income year that the asset is first used or installed for business purposes.
Who is eligible?
- Small businesses, with an aggregated turnover of less than $10 million.
- Threshold will apply on a per-asset basis, so small businesses can instantly write off multiple assets.
Changes for FY23:
It's important to note that from July 1st, 2023, the instant asset write-off amount will be significantly reduced to $20,000. Therefore, if you're considering an upgrade, now is the time to act to take full advantage of the current scheme.
More information
For further information please consult your accountant, tax advisor, or the Australian Taxation Office (ATO)