New laws have now been passed to give effect to the federal budget announcement to increase the instant asset write-off threshold to $30,000.

The amendments mean there will be three tiers within the 2019 financial year for businesses with turnover of less than $50 million –

First Tier

$20,000 threshold for depreciable assets that are acquired before 29 January 2019

Second Tier

$25,000 threshold for assets first used or installed between 29 January 2019 and 2 April 2019

Third Tier

$30,000 threshold for assets first used and installed after 2 April 2019 and before 1 July 2020

From 1 July 2020, the threshold reverts to $1,000 for small business entities only, with all other business and assets subject to the ordinary depreciation provisions after 30 June 2020.

Businesses will need to review their records carefully in order to determine which assets are eligible for the instant asset write-off and which are not.