In May 2017 the government extended the $20,000 instant asset write-off for small business to 30 June 2018. This means that there are less than 5 months before the instant write-off threshold reverts back to $1,000 (on 1 July 2018).
Small business taxpayers who buy an eligible asset costing less than $20,000 can immediately deduct the business portion of that asset in their tax return if:
- they have a turnover of less than $10 million;
- the asset (whether new or second hand) is first used or installed ready for use in the financial year in which the deduction is claimed.
Assets that cost $20,000 or more cannot be immediately deducted. These assets will continue to be deducted over time in the small business depreciation pool.
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