Small business: instant asset write-off and simplified depreciation

On 2 May 2010, the government announced instant asset write-off and simplified depreciation changes for small business.

The changes will enable eligible small businesses to write-off depreciating assets costing less than $5,000 in the income year in which they start to use the asset, or have it installed ready for use.

This amount was subsequently increased to $6,500 as part of the carbon pricing announcements.

It also allows for most other assets to be depreciated in a single pool at a 30% rate. The change applies from the 2012-13 income year.

Media release

For more information refer to the following media releases:

• joint media release No 077 issued on 10 July 2011 by the Treasurer, Minister for Climate Change and Energy Efficiency, and the Minister for Small Business
• joint media release No 028 issued on 2 May 2010 by the Prime Minister with Deputy Prime Minister and Treasurer.

Legislation and supporting material

The following legislation received royal assent on 29 March 2012:

• Tax Laws Amendment (Stronger, Fairer, Simpler and Other Measures) Act 2012
• Explanatory Memorandum.

More information For more information, refer to: the 2010-11 Budget - Budget Paper No. 2 - Part 1 Revenue measures Small Business Concessions.