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  • 10. Small business entity simplified depreciation

    Only complete this item if the company is a small business entity using the simplified depreciation rules.

    In this section:

    Small business concessions: simpler depreciation rules

    Small business entities can claim an immediate deduction for most depreciating assets purchased from 7.30pm (AEST) on 12 May 2015 and on or before 31 December 2020 and first used or installed ready for use for a business purpose:

    • from 12 March 2020 to 30 June 2021, if they cost less than $150,000 each (the instant asset write-off threshold)

    For assets you start to hold, and first use (or have installed ready for use) for a taxable purpose from 7.30pm (AEDT) on 6 October 2020 to 30 June 2022, the instant asset write-off threshold does not apply to businesses using the simplified depreciation rules. You must immediately deduct the business portion of the asset's cost under temporary full expensing.

    To complete this item use the amounts the company calculated for small business entity depreciation deductions at X Depreciation expenses item 6. For more information, see Small business entities.

    A – Deduction for certain assets (costing less than the relevant instant asset write-off threshold)

    Write at A the amount the company claimed at X Depreciation expenses item 6 that relates to assets costing less than the $150,000 and purchased before 7.30pm (AEDT) 6 October 2020, and first used or installed ready for use for a taxable purpose in 2020-21.

    Note that for small business entities using the simplified depreciation rules, you also need to complete S and T item 9.

    B – Deduction for general small business pool

    Write at B the total amount the company claimed at item 6 relating to the general small business pool.

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    Last modified: 27 May 2021QC 64886