22 June 2015
Small businesses can immediately deduct assets costing less than $20,000 purchased since 7.30pm 12 May 2015.
You can use the new threshold amounts in claiming deductions in your 2015 income tax return.
The deduction is claimed in the income year in which the asset is first used or installed ready for use.
The instant asset write-off threshold has increased to $20,000 (up from $1,000). This allows you to immediately deduct the business use portion of a depreciating asset that costs less than $20,000.
The changes apply
Assets that cost $20,000 or more (which can't be immediately deducted) will continue to be deducted over time using a small business pool.
The low pool value threshold will also increase to $20,000. This means that an immediate deduction is available if the pool balance is less than $20,000 at the end of an income year.
What's not included?
There are a small number of assets that aren't eligible for accelerated depreciation, for example horticultural plants that have specialised depreciation rules.
Just like any other business asset, you'll need to keep records to support any claims for a deduction. This includes the ongoing business use of an asset and its eventual disposal. The ATO has a risk-based program to identify taxpayers that are not meeting their obligations and will take measured approaches to influence taxpayer behaviour.
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