# ATO: Good news for instant asset write-off



## Jack Malarkey (Jan 11, 2016)

From the Australian Taxation Office's Small Business Newsroom:

https://www.ato.gov.au/Newsroom/smallbusiness/General/Good-news-for-instant-asset-write-off/

*Good news for instant asset write-off*








*24 June 2020* 
If you 're looking to claim a deduction for assets purchased for your business, the $150,000 instant asset write-off threshold has been extended to 31 December 2020. This means, if eligible, you can claim an immediate deduction for the business portion of an asset first used or installed ready for use from 1 July to 31 December 2020, in your 2020-21 tax return.
If the asset was first used or installed ready for use between 12 March to 30 June 2020, and your business is eligible, you can include it as an immediate deduction in you 2019-20 tax return.
Eligibility depends on:
aggregated turnover of less than $500 million
the date you purchased the asset
when the asset was first used, or installed, ready to use
the cost of the asset being less than the $150,000 threshold.

If you decide to use the simplified depreciation rules, the instant asset write-off applies to all eligible assets you own. Exclusions and limits apply in certain instances, e.g, passenger vehicles.
*Next steps:*
Instant asset write-off for eligible businesses
Simpler depreciation for small business

*See also:*
What's new for small business


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## Spursman (Dec 8, 2016)

Jack can you give me some advice please. 
I bought a new car nearly 4 years ago to drive rideshare 100%. Claimed the gst immediately. Permanently stopped driving end of March this year.

Am I liable for any gst on the current value of the car?


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## Jack Malarkey (Jan 11, 2016)

Spursman said:


> Jack can you give me some advice please.
> I bought a new car nearly 4 years ago to drive rideshare 100%. Claimed the gst immediately. Permanently stopped driving end of March this year.
> 
> Am I liable for any gst on the current value of the car?


Yes on sale or other disposal if you remain registered for GST purposes. You also make a 'decreasing adjustment' in your business activity statement to the extent you have used the car privately.

See:

https://www.ato.gov.au/business/gst...osingofamotorvehicle#Disposingofamotorvehicle


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## Subaru_X (Apr 27, 2015)

Spursman said:


> Jack can you give me some advice please.
> I bought a new car nearly 4 years ago to drive rideshare 100%. Claimed the gst immediately. Permanently stopped driving end of March this year.
> 
> Am I liable for any gst on the current value of the car?


GST in the sale applies if you trade it in or sell it to a company, however if you sell it privately there is no GST.


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## Jack Malarkey (Jan 11, 2016)

Subaru_X said:


> GST in the sale applies if you trade it in or sell it to a company, however if you sell it privately there is no GST.


Australian Taxation Office:

*'Disposing of a motor vehicle*

_'You generally have to account for GST when you dispose of a motor vehicle if the disposal is a taxable sale. *This applies even if * ... *the vehicle is sold to an individual who is not in business (a private sale)*.'_

[Emphasis added]

(https://www.ato.gov.au/business/gst...osingofamotorvehicle#Disposingofamotorvehicle)


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## Subaru_X (Apr 27, 2015)

Jack Malarkey said:


> Australian Taxation Office:
> 
> *'Disposing of a motor vehicle*
> 
> ...


Oh, cool, so that means the car I bought last September in a private sale includes GST?


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## Jack Malarkey (Jan 11, 2016)

Subaru_X said:


> Oh, cool, so that means the car I bought last September in a private sale includes GST?


It does if the previous owner claimed a GST credit on their purchase and then issued you with a tax invoice showing GST was included in the price on sale to you.


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