Treasury Laws Amendment (Increasing and Extending the Instant Asset Write-Off) Act 2019 (51 of 2019)

Schedule 1   Increasing the instant asset write-off for small business entities

Income Tax (Transitional Provisions) Act 1997

11   Subsections 328-180(4) to (6)

Repeal the subsections, substitute:

Assets costing less than $20,000 or $25,000

(4) Paragraph 328-180(1)(b) of the Income Tax Assessment Act 1997 applies to a depreciating asset as if a reference in that paragraph to $1,000:

(a) were a reference to $20,000, if you first acquired the asset at or after the 2015 budget time, and you:

(i) first used the asset, for a taxable purpose, at or after the 2015 budget time and before the 2019 application time; or

(ii) first installed the asset ready for use, for a taxable purpose, at or after the 2015 budget time and before the 2019 application time; or

(b) were a reference to $25,000, if you first acquired the asset at or after the 2015 budget time, and you:

(i) first used the asset, for a taxable purpose, at or after the 2019 application time and before the 2019 budget time; or

(ii) first installed the asset ready for use, for a taxable purpose, at or after the 2019 application time and before the 2019 budget time; or

(c) were a reference to $30,000, if you first acquired the asset at or after the 2015 budget time, and you:

(i) first used the asset, for a taxable purpose, at or after the 2019 budget time and on or before 30 June 2020; or

(ii) first installed the asset ready for use, for a taxable purpose, at or after the 2019 budget time and on or before 30 June 2020.

(5) Paragraph 328-180(2)(a) or (3)(a) of the Income Tax Assessment Act 1997 applies to an amount included in the second element of the cost of an asset as if a reference in that paragraph to $1,000:

(a) were a reference to $20,000, if the amount is so included at any time:

(i) at or after the 2015 budget time; and

(ii) before the 2019 application time; or

(b) were a reference to $25,000, if the amount is so included at any time:

(i) at or after the 2019 application time; and

(ii) before the 2019 budget time; or

(c) were a reference to $30,000, if the amount is so included at any time:

(i) at or after the 2019 budget time; and

(ii) on or before 30 June 2020.

Low value pool

(6) Section 328-210 of the Income Tax Assessment Act 1997 applies as if a reference in that section to $1,000:

(a) were a reference to $20,000, in relation to a deduction for an income year that ends:

(i) on or after 12 May 2015; and

(ii) before the 2019 application time; or

(b) were a reference to $25,000, in relation to a deduction for an income year that ends:

(i) at or after the 2019 application time; and

(ii) before the 2019 budget time; or

(c) were a reference to $30,000, in relation to a deduction for an income year that ends:

(i) at or after the 2019 budget time; and

(ii) on or before 30 June 2020.