Instant asset write-off extended to 31 December 2020

The government will extend the $150,000 instant asset write-off for six months to 31 December 2020.

Australian businesses with annual turnover of less than $500 million will be able to take advantage of this extended time frame to invest in assets to support their business as the economy reopens and coronavirus health restrictions continue to ease. Legislative changes will be made to give effect to this measure.

The ATO notes if you do not use the simplified depreciation rules, you may be eligible to deduct an amount using accelerated depreciation if the asset is an eligible asset, and highlights a car limit of $57,581 for the 2019–20 income tax year applies to passenger vehicles.

The ATO has produced a checklist for Tax Time 2020 claims.