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$20,000 instant asset write off extended now to 30th June 2018

by | May 9, 2017 | General, Small Business, Tax Planning

The “Accelerated Depreciation” threshold of $20,000.00 will end after midnight June 30, 2018. This now is due to revert to $1,000 from 1 July 2018.

Small businesses (with aggregated turnover of less than $10 million) will be able to immediately deduct purchases of eligible assets up to $20,000 first used or installed ready for use by 30 June 2018.

Assets costing more than $20,000 can be placed in a simplified depreciation pool, to be depreciated at 15% in the first year and 30% in subsequent years.

Criteria to meet include:

  • Grouping won’t apply. If you buy 8 computers for $3,300.00 each, they can be immediately write off.
  • Applies to new and second hand assets.
  • Asset must be installed and ready for use by midnight 30 June 2018
  • There are some exemptions e.g. horticultural plants and assets for hire
  • It only applies to assets used directly in the business.
  • Sham schemes will be excluded

Need more information, please contact our office.

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