As part of the Coronavirus stimulus measures announced in March, the Australian government introduced a new instant asset write threshold of $150,000 increased from $30,000. This instant asset threshold applies to asset purchased from 12 March 2020 to 30 June 2020.
While the announcement was welcomed by most Australian business owners, purchasing new assets may not have been a very high priority as a significant portion of Australian businesses have struggled to pay fixed monthly bills such as wages and utilities due to the pandemic.
It has come as no surprise for some that the Morrison government has announced on Tuesday that the new instant asset write off threshold of $150,000 has been extended from 30 June 2020 to 31 December 2020. The announcement has come at the tail end of Coronavirus restrictions being lifted, and we will no doubt see similar measures be announced over the coming months.