More changes to effective lives
The ATO has released Tax Ruling 2020/3 that took effect on the 1st July 2020.
New categories of assets have been included:
- Supermarket and grocery stores;
- Aircraft manufacturing and repair services;
- General practice medical services;
- Child care services; and
- Funeral, crematorium and cemetery services. Continue reading
Breaking News – Instant asset write-off for eligible businesses
Looks like it’s official. The ATO has issued an update on the instant write-off eligibility.
Changes made:
- Instant asset write off eligibility extended to 31 December 2020;
- New and second-hand assets;
- Assets purchased after 7.30 pm (AEDT) on 2 April 2019 but not first used or installed for use until 12 March 2020 to 31 December 2020;
- Instant asset write off eligibility will revert to businesses with an aggregated turnover of less than $10 million and the instant write-off threshold will be $1,000 from 1 January 2021.
What stays the same ?
- Instant asset write-off threshold is still $150,000 (up from $30,000);
- Multiple assets as long as the cost of individual assets is less than the threshold;
- Eligible business threshold increases from $50 million to $500 million;
- Excluded assets including leased for more than 50% of the time on a depreciating asset lease, assets allocated to low value pool, horticultural plants, software allocated to a software development pool and capital works deductions;
- Eligibility test.
