In response to COVID-19, the Australian Government has increased the instant asset write-off (IAWO) threshold from $30,000 to $150,000 and expanding access to include all businesses with aggregated annual turnover of less than $500 million until 30 June 2020. It will support business investment and is estimated to lower taxes paid by Australian businesses by $2.5 billion over the next two years.
The higher IAWO threshold provides cash flow benefits for businesses that will be able to immediately deduct purchases of eligible assets each costing less than $150,000. The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets.
