The Australian Taxation Office has confirmed that the Instant Asset Write-Off Scheme has been extended to 30th June 2020, and the asset limit has been expanded to $30,000.
Significantly, the scheme has also been expanded to include many more businesses as the turnover limit has been raised from $10 million to $50 million.
However, such has been the piecemeal approach to extending the scheme, with two separate government announcements in the first half of the year, the $30,000 asset limit is only applicable to new or second hand assets brought into use or installed ready for use after 2nd April 2019.
For assets first brought into use between 29th January 2019 and 2nd April 2019, the threshold is $25,000, and before 29th January the old $20,000 limit still applies.
Nonetheless, Australian businesses with turnovers up to $50 million can now instantly write off investments of up to $30,000 on a whole range of assets, and do so multiple times in the tax year to 30th June 2020.
In the manufacturing sphere, the increase in the asset limit is a significant one. As anyone walking the halls of the recent Austech and National Manufacturing Week exhibitions will know, you can get some significant machinery for $30,000, right up to and including a choice of collaborative robots.