$20,000 instant asset write-off

January 29, 2018

 

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.

 

Remember, we can help you with tax advice, do not hesitate to contact our office.

 

Source: ATO

Share on Facebook
Share on Twitter
Please reload

Subscribe to our Blog
Recent Posts

December 15, 2019

December 13, 2019

March 18, 2019

December 13, 2018

Please reload

Archive
Please reload

Follow Us
  • Facebook Basic Square
  • Blogger Social Icon
  • ABF Logo

E U R O A 

41-43 Railway Street, Euroa Vic 3666
Phone: +61 03 5795 1885 

Email: tax@abfpartners.com.au

© 2015 ABF Partners Pty Ltd: Site by Mac-Access, Euroa Proudly created with Wix.com
 

  • Facebook - Grey Circle
  • Blogger - Grey Circle