The $150,000 instant asset write-off has now been extended until the end of the year as the government looks to encourage businesses to invest further in assets.  Businesses with an aggregated annual turnover of less than $500 million are eligible for an expanded instant asset write-off for asset investments of up to $150,000.  The threshold applies on a per asset basis, so businesses can immediately write-off multiple assets, provided each asset costs less than $150,000.  The announcement applies to new or second-hand assets first used or installed ready for use from 12 March 2020 until 31 December 2020. Legislation to give effect to the extension will be introduced to Parliament shortly.

Also from 12 March 2020,  businesses with turnover less than $500 million (not otherwise using the instant asset rules) will be able to access a 15-month investment incentive via an accelerated depreciation deduction.  Eligible businesses will be able to deduct 50% of the cost of an eligible asset on installation, with existing depreciation rules applying to the balance of the asset’s cost.  This measure applies until 30 June 2021.