$30,000 Instant Asset Write-off for Small Businesses

23 May $30,000 Instant Asset Write-off for Small Businesses

Good news for small business owners: Are you planning to purchase a major asset this year? You will now have access to a write-off up to $30,000! But what does this mean exactly?

Great news for small businesses: an increase in the instant asset write off threshold.

We’ve got some great news about claiming the cost of your business assets. Small businesses with a turnover under $10 million can take advantage of the instant asset write off. There have been some studies that show that a high percentage of small businesses are not taking advantage of this deduction because they are not familiar. For small businesses that haven’t used this concession previously, here’s what you’ll need to know to maximise this scheme:

What is the instant asset write-off?

A tax break that allows small businesses (including those with an aggregated turnover of $10 million or less—you can consult your tax advisor to confirm) to lower their taxable income from any purchased assets that cost less than $30,000 – in the same income year.

What does this mean for your business?

  • The tax break means small business owners can reduce their taxable income – and tax payable – in the same financial year an asset was purchased and installed.
  • Assets must be purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020 to qualify.
  • Small businesses can currently purchase an eligible asset up to $30,000 (excluding GST) and write it off as a tax deduction in the same financial year of purchase.
  • You can claim multiple assets if each one is under $30,000. There is no cap on how many times a business can use this deduction. There is a cap of $30,000 per asset which means that you could potentially purchase any number of assets for your business before June 30th and instantly deduct them all.

What assets can you purchase to claim the cost?

Unsure of what is covered in the $30,000 tax break? You can use it for anything from computer equipment to a coffee machine for the office kitchen to solar panels for the office roof or even a car.

  • Plant and equipment
  • Vehicles
  • New technology/facility or machinery
  • tools and electronics such as:
    • machines for POS
    • mobile phones
    • computer monitors
    • laptops
    • printers

Second-hand goods also qualify for the tax break (Equipment, vehicles, tools, electronics). Exclusions from the write-off include horticultural plants, building construction and software allocated to a software development pool. You won’t get $30,000 as a tax refund – the write-off is a deduction of your taxable income.

How to take advantage of the instant write off?

If you are looking to purchase an equipment, electronics, or vehicle for your business, now is a great time to take advantage of this scheme.Your business will still need to fund the purchase for the period until you claim the instant asset write-off, which is only a portion of the purchase price.

The instant asset write-off is particularly useful for businesses intending to bring forward capital expenditure at the end of the financial year.


Thinking about purchasing assets to grow your business? Let’s put your plans into action sooner and get you the funds you need. Assets purchased before 30 June 2020 could be eligible for a $30,000 instant asset write-off. Schedule a call with me today to get access to highly competitive finance options available in the market.  Call 0408 081 082.



 Credit Representative Number 486927 is authorised under Australian Credit Licence 389328.

 This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.

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