SBE taxpayers may be entitled to an immediate deduction NOW…

Posted June 20, 2019

SBE taxpayers may be entitled to an immediate deduction NOW…

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.

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