The Australian government is making the instant asset tax write-off a permanent fixture for small businesses. Treasurer Jim Chalmers announced the change one week before the May budget.
Key Details
- The $20,000 threshold per asset will remain in place permanently.
- The write-off applies to new and second-hand equipment, tools, and technology.
- Claims are made at the end of each financial year.
- Previously, the threshold was set to drop from $20,000 to $1,000 after June 30.
Statements
Treasurer Jim Chalmers said the measure is part of a productivity push and will save small businesses thousands of dollars. He stated that it will allow immediate deductions on equipment worth up to $20,000 and reduce compliance time by 376,000 hours per year.