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Instant asset write-off stimulus extended

New rules increasing the instant asset tax write-off, aimed at supporting businesses through the COVID-19 crisis, have been extended by six months.

Businesses making up to $500 million per year will be able to instantly deduct the cost of assets worth up to $150,000 until December 30.

The Instant Asset Write-Off scheme was expanded in March as part of a suite of early stimulus measures.

It was, at the time, set to expire June 30.

Treasurer Josh Frydenberg said the extended scheme will support businesses as the economy reopens and restrictions are eased.

He said it will “bring investment forward to support economic growth over the near term.”

“The instant asset write-off also helps to improve cash flow for businesses by bringing forward tax deductions for eligible expenditure,” he said.

“The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided each costs less than $150,000.”

Information on stimulus opportunities for business can be found at covid19.cciwa.com.

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