From 12 March 2020, the instant asset write-off threshold was increased to $150,000 for eligible businesses. From 1 July 2020 however, the threshold will be significantly reduced to its legislated $1,000 for each asset. There are some exclusions and limits. If you’re purchasing a passenger vehicle for your business, the total instant asset write-off is limited to the business use portion of the car limit of $57,581 for the current 2019-20 financial year. For example, if the car is used 80% for business-related travel, then the total you can write-off is 80% of the $57,581 limit, which is $46,064.
Instant asset write-off thresholds
|
Eligible businesses |
The date range for when asset first used or installed ready for use |
Threshold |
| Less than $10 million aggregated turnover |
1 July 2020 onwards | $1,000 |
| Less than $500 million aggregated turnover |
12 March 2020 to 30 June 2020 (see note) | $150,000 |
| Less than $50 million aggregated turnover |
7.30pm (AEDT) on 2 April 2019 to 11 March 2020 | $30,000 |
| Less than $10 million aggregated turnover |
29 January 2019 to 7.30 pm (AEDT) on 2 April 2019 | $25,000 |
| Less than $10 million aggregated turnover |
1 July 2016 to 28 January 2019 | $20,000 |
| Less than $2 million aggregated turnover |
7.30 pm (AEST) on 12 May 2015 to 30 June 2016 | $20,000 |
| Less than $2 million aggregated turnover |
1 January 2014 to prior to 7.30 pm (AEST) 12 May 2015 | $1,000 |
| Less than $2 million aggregated turnover |
1 July 2012 to 31 December 2013 | $6,500 |
| Less than $2 million aggregated turnover |
1 July 2011 to 30 June 2012 | $1,000 |
https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/Simpler-depreciation-for-small-business/Instant-asset-write-off/