The instant asset write-off threshold has been increased from $30,000 to $150,000 and expanded access to include businesses with aggregated annual turnover of less than $500 million (up from $50 million). This applies from 12 March 2020 until 30 June 2021, and purchased by 31 December 2020.
The higher Instant Asset Write-Off (IAWO) threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write‑off multiple assets.
Eligibility to use instant asset write-off depends on:
- Your aggregated turnover (the total ordinary income of your business and that of any associated businesses)
- The date you purchased the asset
- When it was first used or installed ready for use
- The cost of each asset being less than the threshold.
The criteria have changed over time so make sure you check whether your business is eligible.
You are not eligible to use instant asset write-off on an asset if your aggregated turnover is $500 million or more.
If temporary full expensing applies to the asset, you do not apply instant asset write-off.