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  • Extending the immediate deductibility threshold for small business

    On 9 May 2017, the Government announced an extension to the 2015–16 Budget measure providing an instant asset write-off provision for small business. It made further announcements on 29 January 2019 and as part of the April 2019 Budget to further increase the threshold and increase the number of businesses eligible for the write-off.

    Small businesses can immediately deduct the business portion of most assets if they were purchased at or after 7:30pm on 12 May 2015 and each asset costs less than the threshold, whether new or second-hand. You claim the deduction through your tax return, in the year the asset was first used or installed ready for use. The threshold is:

    • from 7.30pm on 2 April 2019 until before 30 June 2020, $30,000
    • from 29 January 2019 until before 7.30pm on 2 April 2019, $25,000
    • from 12 May 2015 until before 29 January 2019, $20,000

    The current 'lock out' laws for simplified depreciation rules will continue to be suspended until 30 June 2020.

    Medium businesses

    From 2 April 2019, the access to instant asset write-off has also been expanded to include businesses with an aggregated turnover from $10 million to less than $50 million for assets that cost less than $30,000 and were purchased and first used or installed ready for use from 7.30pm on 2 April 2019 to 30 June 2020.

    Legislation and supporting material

    The Treasury Laws Amendment (Accelerated Depreciation For Small Business Entities) Act 2017External Link received royal assent on 22 June 2017.

    Treasury Laws Amendment (Increasing and Extending the Instant Asset Write-Off) Act 2019External Link received royal assent on 6 April 2019.

    See also:

      Last modified: 11 Sep 2019QC 51987