COVID-19: Increasing Instant Asset Write Off

The depreciating asset instant asset write-off threshold will be increased from $30,000 (for businesses with an aggregated turnover of less than $50 million) to $150,000 (for businesses with an aggregated turnover of less than $500 million) until 30 June 2020. 

The measure applies to both new and second-hand assets first used or installed ready for use in the period beginning on 12 March 2020 (i.e., the date on which this measure was announced) and ending on 30 June 2020.

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Accelerating depreciation deductions for new assets

A new time-limited 15-month investment incentive (available for eligible assets acquired from 12 March 2020 up until 30 June 2021) will also be introduced to accelerate certain depreciation deductions for businesses with an aggregated turnover below $500 million.  An immediate deduction of 50% of the cost of the eligible asset on installation with normal depreciation rules applying to the balance of the cost.  This will only apply to new depreciable assets (not used) committed to after 12 March 2020 and in use by 30 June 2021.