Small businesses can write off and claim a full deduction for certain depreciable assets costing less than $20,000. This higher write off threshold will revert back to $1,000 shortly. Here is how you can take advantage of this before it ends.

Small businesses with less than $10 million annual turnovers can claim a full deduction for depreciable assets that cost less than $20,000. The depreciable asset must be purchased and installed ready for use on or before 30 June 2018.

From 1 July 2018, small businesses will only be able to claim an instant write-off for depreciable assets costing less than $1,000.

If you were proposing to purchase any new items of plant and equipment, it would be beneficial (if circumstances allow) to purchase and install it by 30 June 2018. The ATO has extended this concession in the past from 30 June 2017 to 30 June 2018 but there is currently no proposal for any further extension.

Examples of depreciable assets include (but are not limited to) – plant and machinery, computers, phones, office furniture.

To take advantage of this instant asset write off, you also need to utilise the other simplified depreciation rules including:

• Pooling any new depreciable assets purchased that cost more than $20,000 and claiming depreciation based on the ATO pool rates;

• Write off the balance of the small business pool if it is less than $20,000 at the end of 30 June; and

• A deduction can only be claimed on the portion of the depreciable asset that is used for business.


To find out more information, please contact the team at EMspire Advisory!

Please note that this information is not specific and is general in nature and cannot be relied on as advice. Please contact us for specific advice for you and your circumstances.