The Federal Government’s Accelerated Depreciation for Small Business Entities initiative is an excellent opportunity to upgrade equipment, save energy and help your small business long-term.
Your business is considered a small business if you have an aggregated turnover of less than:
• $10 million from 1 July 2016 onwards
• $2 million for previous income years.
Under the instant asset write off option, assets costing less than the instant assetwrite-off threshold of $20,000 can be written off in the year they are bought and used, or installed ready-for-use. This applies irrespective of whether the asset is purchased new or second-hand. It is possible to use this $20,000 option multiple times, however, the cost of each item must be under the threshold.
Assets that cost $20,000 or more are deducted over time using the general small business pool option. Under the pooling mechanism a deduction for 15 per cent of the cost is allowed in the first income year and a 30 per cent deduction each year after the first year. When the balance of your small business pool is less than $20,000, youcan write-off the entire balance at the end of that income year.
Download the factsheet