$20,000 instant asset write-off

The write-off threshold of $20,000 has been extended to 30 June 2018.

If you buy an asset and it costs less than $20,000, you can immediately deduct the business portion in your tax return. The $20,000 threshold applied from 12 May 2015 and will reduce to $1,000 from 1 July 2018.

You are eligible to use simplified depreciation rules and claim the immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

• you have a turnover less than $10 million, and
• the asset was first used or installed ready for use in the income year you are claiming it in.

Assets that cost $20,000 or more can't be immediately deducted. They will continue to be deducted over time using the general small business pool. You write-off the balance of this pool if the balance (before applying any other depreciation deduction) is less than $20,000 at the end of an income year.

Contact us on 02 6260 4994 for more information about the $20,000 business write-off threshold.

Source:
Reproduced with the permission of the Australian Tax Office. This article was originally published on https://www.ato.gov.au/newsroom/smallbusiness/

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