Simplified depreciation for small business

You can choose to use simplified depreciation rules if you have a small business with an aggregated annual turnover of less than $2 million.

Under these rules, you:

  • immediately write off – that is, claim their full cost in the year you buy them – most depreciating assets costing less than $20,000 (the current instant asset write-off threshold)
  • pool most other depreciating assets in a small business asset pool and claim  
    • a 15% deduction in the first year (regardless of when you purchase or acquire them during the year)
    • a 30% deduction each year after the first year.

If you choose not to use the simplified depreciation rules, you must use the general depreciation rules.

See also:

Last modified: 02 May 2016QC 45982