How the instant asset write-off works
Here is a case study of how the instant asset-write-off works:
Early Bird Café is a business registered for GST with a turnover of $5m.
An immediate tax write-off of $15,000, as the counter was first used before 28 January.
An immediate tax write-off of $23,000 as the walk-in refrigerator was installed and ready for use before 2 April 2019. Delivery and payment dates are not taken into account. The write-off is the GST exclusive value. The GST of $2,300 is claimable in the BAS return.
If the café business was not registered for GST (total sales being below $75,000) there would be no immediate tax write-off because the cost to the business is $25,300 and is more than the cost cap of $25,000.
An immediate tax write-off of $28,500 as the balance in the simplified tax depreciation pool is less than the cost cap of $30,000.