EOFY IT Budget Planning
With the end of the financial year fast approaching, many organisations take the opportunity as part of their regular financial budgeting to assess their upcoming IT requirements.
On the 2nd April 2019, as part of the 2019/2020 Federal Budget, the Government and ATO announced some changes to the Instant Asset Write-Off (IAWO) scheme as follows:
- A further increase to the threshold at which Small Businesses can access an immediate deduction for depreciating assets, from $25,000 to $30,000; and
- Expanding the IAWO to make it available to Medium-sized Businesses (turnover of $10m – $50m), in addition to Small Businesses.
This means that any business that meets this new criteria, can claim a deduction of up to $30,000 for the business portion of each asset (new or second hand), purchased and first used or installed ready for use, from 2nd April 2019 until 30 June 2020.
Therefore, please let DHS know ASAP if you were thinking of making any significant IT equipment purchases in the coming weeks, and we can potentially assist in bringing the purchase forward into the current financial year ending 30th June 2019.
For further information on the IAWO, please refer to the ATO Newsroom.