This is crucial.ĭepending on your business, eligible assets for the instant asset write off can include:

You must be able to prove that the piece of equipment is central to your business and its operation.

For small businesses with annual turnover between $50 million and $500 million, they can now claim a full deduction for new and second-hand assets valued up to $150,000.

The instant asset write off scheme works by allowing you to immediately write off the value of a business-related piece of equipment or asset. The idea behind the scheme is to encourage spending and business growth by incentivising the purchase and installation of work-related equipment for eligible businesses. The instant asset write off for small business is a handy tax saving scheme available for all Australian small businesses.īasically, if you’ve bought a core piece of depreciating equipment or other work-related business assets, you can save on your tax bill with a nice offset by making an immediate tax deduction. Instant asset write off for small businesses “The instant asset write off also helps to improve cash flow for businesses by bringing forward tax deductions for eligible expenditure,” Josh Frydenberg, Australian federal government Treasurer. Now that we live in a post COVID-19 world, the scheme has been expanded in scope and become even more important to aid the recovery of individual businesses like yours, and the economy at large. What’s the purpose of this instant asset write off scheme? As it has been over the last few years, the aim of this scheme is to get cash flowing into the economy and businesses spending while also incentivising the growth of that business. You may have heard of the instant asset write off scheme (IAWO), but you might not know exactly what is the instant asset write off for small businesses and how it actually works.

Ato small business tax write off