Prime Minister Scott Morrison has pledged to increase the small business instant asset write-off scheme from $20,000 to $25,000 and extend the scheme through to 30 June, 2020, instead of 2019.

Mr Morrison’s announcement comes after Labor unveiled plans to introduce the Australian Investment Guarantee, a permanent scheme which will allow businesses to claim up to 20 per cent in the first year of any new depreciable asset worth over $20,000.

With the Coalition and Labor making small business a key focus in the lead up to the next federal election, passing legislation for the proposed amendments to this scheme will be a high-priority for the government when Parliament resumes on 12 February, 2019.

What is the instant asset write-off scheme?

Under the instant asset write-off scheme, if you have a small business with an aggregated turnover of less than $10 million, you can deduct the business portion of a depreciating asset worth less than $20,000 (proposed to increase to $25,000) in the year you bought and used it. Additional points to note:

  • the purchased asset can be new or second-hand
  • the total cost of the asset must be less than the threshold amount irrespective of any trade-in amount you receive
  • if you later dispose of an asset for which you claimed an instant write-off, the proceeds are included in assessable income
  • In working out the amount you can claim you must subtract any private use portion


Further assistance

Before making an asset purchase, we suggest you speak to your accountant to discuss how the purchase might impact your cash flow or current tax position.  For more information on the instant asset write-off scheme, or further advice on timing your asset purchases, please contact our advisors on 07 3831 1055 or

logo linkedin 32


DISCLAIMER: The information on this website and the links provided are for general information only and should not be taken as constituting professional advice from Hall Browns Accountants. You should consider seeking the appropriate legal, financial, or taxation advice to check how the website information relates to your unique circumstances.


If you are looking for strategies that work,
call us on 07 3831 1055 or send us a message below.