The instant asset write-off currently in ITAA 1997 Div 328 and 40 has been extended to include the vast majority of Australian businesses, in response to the COVID-19 pandemic. Amended legislation now permits businesses with less than $500m in aggregated turnover to an immediate write-off for an asset that:

• is purchased and installed ready for use between 12 March 2020 and 30 June 2021, and
• costs less than $150k.
Legislation was since amended even further with the introduction of the full expensing regime. A new CCH iQ event, based on the 2020 federal budget announcement and ensuing legislation, is located here. The new regime applies from 6 October 2020 (7:30pm AEDT).

Instant asset write-off tables – based on entity’s turnover
Aggregated turnover $10m and under

Timeframe (first used and first installed ready for use)

Instant asset write-off limit

12 May 2015 to 28 January 2019

$20,000

29 January 2019 to 2 April 2019 7:30pm (AEDT)

$25,000

2 April 2019 7:30pm (AEDT) to 11 March 2020

$30,000

12 March 2020 to 6 October 2020 7:30pm (AEDT)

$150,000

6 October 2020 7:30pm (AEDT) to 30 June 2022

No limit applies (full expensing regime)

Aggregated turnover between $10m and $50m

Timeframe

Instant asset write-off/Low value pool limit

Prior to 2 April 2019

$1,000

2 April 2019 7:30pm (AEDT) to 11 March 2020

$30,000

12 March 2020 to 6 October 2020 7:30pm (AEDT) Note: Ready for use by 30 June 2021

$150,000

6 October 2020 7:30 (AEDT) to 30 June 2022

No limit applies (full expensing regime)

From 1 July 2022 (reverts to low value pool)

$1,000

Aggregated turnover between $50m and $500m

Timeframe

Instant asset write-off/Low value pool limit

Prior to 12 March 2020

$1,000

12 March 2020 to 6 October 2020 7:30pm (AEDT) Note: Ready for use by 30 June 2021

$150,000

6 October 2020 7:30pm (AEDT) to 30 June 2022

No limit applies (full expensing regime)

From 1 July 2022 (reverts to low value pool)

$1,000

Note: The full expensing regime noted above in the tables applies to businesses with aggregated turnover up to $5b, as announced in the 2020 federal budget.

Small business depreciation pools
This change also applies to the general write-off of the entire balance of a general small business deprecation pool.

However, the entity needs to be utilising Div 328, ie the small business depreciation pools.

For the 2019/20 income year, the pool can be written off if the closing balance is less than $150,000. In the 2020/21 and 2021/22 income years, the full balance of a small business depreciation pool may be written off in accordance with the full expensing regime.

Subscribe To Our Newsletter

Subscribe To Our Newsletter

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!

Skip to toolbar