Increase the Instant Asset Write Off from $25,000 to $30,000 and Extend it to Medium Businesses

The Government has announced that it will increase the instant asset write off from $25,000 to $30,000 from 2 April 2019 to 30 June 2020 for Small Businesses with an aggregated annual turnover of less than $10 million. This will create 3 different thresholds during this 2019 Financial Year for Small Businesses:

  • Less than $20,000 from 1 July 2018 to 28 January 2019.
  • Less than $25,000 from 29 January to 2 April 2019.
  • Less than $30,000 from 2 April to 30 June 2019 and onwards to 30 June 2020.

Capital purchases greater than these limits will continue to be depreciated in the General pool at 15% for the first year and 30% for subsequent years. The pool balance can be deducted if the pool balance at the end of the year is less than $30,000.

For the first time, Medium Size Businesses with a turnover between $10 Million and $50 Million will be able to access the instant access write off from 2 April 2019 to 30 June 2020 for assets costing less than $30,000. As Medium Businesses don’t have access to the small business pooling rules, they must depreciate assets costing more than $30,000 under their normal depreciation rules.

Deferral of Proposed Division 7A Changes to 1 July 2020

Defer the Start Date of the proposed Division 7A changes by one year to commence from 1 July 2020 not 1 July 2019.

Expanding Single Touch Payroll (STP)

Expansion of the data collected by the ATO through Single Touch Payroll (STP) and sharing this data with other Commonwealth Agencies. From 1 July 2020, the Government will simplify and automate the reporting of any employment income for welfare recipients through STP.

Strengthening the Australian Business Number System

The Government will require ABN holders to do the following if they want to keep their ABN active:

  • Lodge their income tax return from 1 July 2021 or
  • Confirm the accuracy of their details on the Australian Business Register annually from 1 July 2022
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