Due to the prevailing situation of COVID-19, the government has decided to temporarily extend the access of instant write-off up to $150,000 for small businesses till 31st of December 2020. The instant asset write-off is available so that small businesses can claim quick deductions immediately for some expenses that has occurred based on the new and second-hand depreciating assets. Due to the pandemic the asset value threshold has increased from $30,000 to $150,000.
Likewise the turnover eligibility for small businesses increased from $50 million to $500 million. This is applied for all eligible expenses that has taken place in between 12th March 2020 to 31st December 2020.
Small businesses that were not able to obtain the asset after the restriction of COVID-19 will be able to claim it from now till the 31st of December. The six-month extension would benefit several small business owners for 2 income tax years, 2019 – 2020 and 2020 – 2021.