$20,000 instant asset write-off extended
In good news for small business owners, the $20,000 instant asset write-off threshold has been extended to 30 June 2019. This means you can continue to claim the cost of new or second-hand assets that are less than the threshold of $20,000.
What does it mean for your business?
Your business must have a turnover of less than $10 million to take advantage of the $20,000 instant asset write-off. Using simplified depreciation rules, you can:
- instantly claim the business portion of most depreciating assets that cost less than $20,000 in your tax return for the relevant income year
- only claim a deduction for the portion of the asset used for business or other taxable purposes and not for the portion for private use.
Assets of more than $20,000 can be put into a small business asset pool, where you can claim gradual amounts each year.
What are depreciating assets?
If you’re unsure, a depreciating asset declines in value over time and includes items such as:
- electrical tools
For more information, visit the Australian Taxation Office website or contact your tax agent or accountant.
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