The Instant Asset Write-Off (IAWO) has been increased to $150,000
Instant Asset Write-Off (IAWO)
The Australian Government has recently announced a number of economic stimulus packages to assist businesses in navigating through the COVID-19 pandemic. One stimulus package includes an increase of the Instant Asset Write-Off (IAWO) threshold to $150K, up from $30k in the existing package. Eligibility has also been expanded to cover ABN registered businesses with a turnover of less than $500 million, up from $50 million as previously set. This new stimulus package is now active until the 31st of December, 2020.
The new IAWO package would allow businesses to purchase a new or used machine or multiple machines to a total sum of under $150K (ex. GST), on the condition that the machine/s must be delivered prior to December 31st 2020. Machine attachments can also be eligible for the IAWO including new buckets, hammers, grabs etc. All machine purchases under $150K (ex. GST) which were made from the 12th of March, 2020 till 31st of December, 2020 will be eligible.
For further information on this Australian Government stimulus package please visit the Australian Taxation Office website: www.ato.gov.au.