Officially, the $30,000 instant asset write-off has been passed by both houses of parliament on 4 April 2019.
This means that from 7:30pm AEDT 2 April 2019 to 30 June 2020, assets purchased less than $30,000 will be entitled for an immediate write-off.
The instant asset write-off means that a small business can claim a complete deduction for assets costing less than the threshold. In the past, assets of this size needed to be written off over a number of years under depreciation rules.
There have been several changes for assets first used or installed ready for use during the 2018/19 income year.
The threshold for immediate deduction is as follows:
|Purchase date or date asset first used (or installed ready for use) for a taxable purpose |
|1 July 2018 to 28 January 2019
|29 January 2019 to 2 April 2019 (7:30pm AEDT)
|2 April 2019 (7:30pm AEDT) to 30 June 2019
Also, an increase of the threshold to $30,000 may mean that your small business depreciation pool can be written off for the 2018/19 income year. The entire balance of the pool will be available to be fully deducted in the 2018/19 income year if the pool balance before the calculation of depreciation is less than $30,000.
If you would like to go through the matter with us further, please do not hesitate to contact us.