Small business entity concessions
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Small businesses can use the simplified depreciation rules as an alternative to the uniform capital allowances (UCA) rules to work out deductions for most depreciating assets.
Business means the individual, partnership, company or trust that carries on the business activity.
Small business means ‘small business entity’, which is an individual, partnership, trust or company with aggregated turnover of less than $2 million.
In general, you can:
Note: The government has announced its intention to reduce the instant asset writeoff threshold to $1,000 and remove the special depreciation rules for motor vehicles from 1 January 2014. For more information, see our new legislation web pages on Instant asset write-off and motor vehicles.
Some assets are excluded from the simplified depreciation rules. If you choose to use the simplified depreciation rules, you must use them to work out deductions for all your depreciating assets that the rules apply to.
If you have non-business income, such as salary and wages, you will also claim a deduction for depreciating assets you use in earning your employment income under these simplified depreciation rules.
Where you can claim a GST credit for a depreciating asset, you must deduct the amount of the GST credit from the asset’s adjustable value before working out the deduction for depreciation. The examples here use GST-exclusive figures.
Find out more
For information on the UCA rules, see Capital allowances.
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