Small business and general business tax break

What makes an asset 'eligible'?

An eligible asset is:

• new
• tangible
• a depreciating asset
• costs $1,000 or more for small business, or $10,000 or more for larger businesses
• bought and used or installed by the deadline
• used principally in Australia and principally for business
• eligible for a deduction for decline in value under section 40-25 of the Income Tax Assessment Act 1997.

The business tax break also covers new investment in an existing asset such as improvements - but it cannot be used for repairs.

As an asset must be a tangible, depreciating asset for which a deduction for decline in value is available, you may be interested in reading the more detailed explanation at What is an eligible asset?

For more information, also see What is new investment?

Sections within Buying assets

• What makes an asset 'eligible'?
• What can I buy?
• What's a 'depreciating asset'?
• What about repairs or improvements?
• What about buying a car?
• What about buying a luxury car?
• What about leasing a car?
• What about buying a computer?
• What about leasing or hire purchase?
• What if I buy and then sell the asset?
• Can I combine purchases?
• What is a set?
• What does substantially identical mean?
• What can't I buy?
• Can I buy second-hand assets?
• What are the deadlines?
• What if my investment is financed through hire purchase or a luxury car lease?
• How much do I have to spend?
• How do I work out the asset's cost?
• What does 'for the principal purpose of carrying on a business' mean?