The Treasury Laws Amendment (Increasing and Extending the Instant Asset Write-Off) Bill 2019 – introduced as Treasury Laws Amendment (Increasing the Instant Asset Write-Off for Small Business Entities) Bill 2019) – received Royal Assent on 6 April 2019 as Act No 51 of 2019. The Bill was passed by the Senate with 18 government amendments to implement the changes announced in the 2019–2020 Federal Budget. Those amendments were agreed to by the House of Representatives on 4 April 2019.
As originally introduced, the Bill amends the tax law to increase the threshold below which amounts can be immediately deducted under the instant asset write-off rules from $20,000 to $25,000 from 29 January 2019 until 30 June 2020, and extends by 12 months to 30 June 2020 the period during which small business entities can access the expanded accelerated depreciation rules (instant asset write-off). The Senate amendments to the Bill implement the Government's 2019–2020 Budget changes so that:
- the write-off is extended to medium sized businesses (turnover up to $50 million), where it previously only applied to small business entities;
- the instant asset write-off threshold increases from $25,000 to $30,000 – the threshold applies on a per-asset basis, so eligible businesses can instantly write off multiple assets.
Small business entities (with aggregated annual turnover of less than $10 million) will be able to immediately deduct purchases of eligible assets costing less than $30,000 that are first used, or installed ready for use, from Budget night (2 April 2019) to 30 June 2020.
Medium sized businesses (with aggregated annual turnover of $10 million or more, but less than $50 million) will also be able to immediately deduct purchases of eligible assets costing less than $30,000 that are first used, or installed ready for use, from Budget night to 30 June 2020. The concession will only apply to assets acquired after 2 April 2019 by medium sized businesses (as they have previously not had access to the instant asset write-off) up to 30 June 2020.