The budget proposal to allow assets under $30,000 (excl GST) to be written off immediately has passed both Houses of Parliament and is now in play as of 3rd April 2019 (subject to Royal Assent which should be a given). This applies to all small-medium sized businesses with a turnover of under $50 million. It is important to note that this increased threshold only applies until the end of the next financial year being 30th June 2020. After this time, the threshold reduces back to $1,000 which means from 1st July 2020 onward, assets over $1,000 will be depreciated over time rather than written off immediately. Businesses should therefore give proper consideration to what assets under the threshold they may need in the foreseeable future and ideally purchase these in the next 15 months to take advantage of the immediate tax write off.
