Legislation for the $30,000 instant asset write-off was passed by both houses of parliament on 4 April 2019.

From 7:30pm AEDT 2 April 2019 to 30 June 2020, assets purchased costing less than $30,000 will be entitled for an immediate write-off.

The instant asset write-off means that a small business can claim a complete deduction for assets costing less than the threshold. In the past, assets of this size needed to be written off over a number of years under depreciation rules.

During the last year there have been a number of changes for assets first used or installed ready for use. The following is a summary of the dates and the threshold that applies:

Threshold

1 July 2018 to 28 January 2019 $20,000
29 January 2019 to 2 April 2019 (7:30pm AEDT) $25,000
2 April 2019 (7:30pm AEDT) to 30 June 2020 $30,000

A reminder also that the increase of the threshold to $30,000 may mean that your small business depreciation pool can be written off for the 2018/19 income year. The entire balance of the pool will be available to be fully deducted in the 2018/19 income year if the pool balance before the calculation of depreciation is less than $30,000.