Small business entity (‘SBE’) (i.e. taxpayers with turnover less than $10 Million) who choose to depreciate their assets under the simplified depreciation rules are entitled to an immediate deduction with respect to low-cost assets in the year they are first used or installed ready for use for a taxable purpose.
Thanks to recent changes, SBE taxpayers may be entitled to an immediate deduction in the 2019 income year for acquiring certain depreciating assets costing less than $30,000 plus GST for assets used or installed ready for use from 7:30pm AEST on 2 April 2019 until 30 June 2019.
Assets acquired prior to 2 April 2019 may also be eligible for immediate write-off, although the thresholds may be lower (e.g., the threshold is $20,000 for assets used or installed ready for use from 1 July 2018 until 28 January 2019, and $25,000 for assets used or installed ready for use from 29 January 2019 until 7:30pm AEST on 2 April 2019).
While helpful, these changes have complicated matters for the 2019 year, so please contact us if you need any help.