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.

2018-11 - $20,000 instant asset write-off extended

What does it mean for your business?

Your business must have a turnover of less than $10 million to take advantage of $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?

A depreciating asset declines in value over time, such as:

  • computers
  • electrical tools
  • furniture
  • curtains
  • carpets
  • cars.

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