July 20, 2017
If you bought an asset before 1 July 2017 and it costs less than $20,000, you can immediately deduct the business portion in your 2017 tax return.
You are eligible to use simplified depreciation rules and claim the immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:
- you have a turnover less than $10 million (this has increased from $2 million), and
- the asset was first used or installed ready for use in the 2016-17 income year.
Assets that cost $20,000 or more can’t be immediately deducted. They will continue to be deducted over time using a small business asset pool. You write-off the balance of this pool if the balance (before applying any other depreciation deduction) is less than $20,000 at the end of an income year.
The write-off threshold of $20,000 has been extended to 30 June 2018.
You can find more information on the ATO website or please speak with your accountant if you have any questions.