MAXIMISE DEPRECIATION DEDUCTIONS

An important characteristic for small business in the 2019-20 Federal Budget on 2 April 2019 was the announcement that a small business entity (SBE) might potentially qualify for an asset write-off one under one of three varying caps during the year ended 30 June 2019.

A medium sized business entity (MSBE) will also be able to claim the instant asset write-off in respect of a depreciating asset that is both first acquired for a cost of less than $30,000 on or after 7.30pm on 2 April 2019 which is used or installed ready for use by 30 June 2020.

The write-off amount will depend on the date the asset is first used or installed ready for use for a taxable purpose. For businesses registered for GST, the threshold is calculated on a GST-exclusive basis, but for businesses not registered for GST, the threshold is calculated on a GST-inclusive basis.

Entity type   Data acquired Time depreciating asset first used or installed ready for use for a taxable purpose  Asset cost threshold 
Small business entity From 7.30pm 12 May 2015 1 July 2018 – 28 January 2019 $20,000
Small business entity From 7.30pm 12 May 2015 29 January 2019 – 7.30pm 2 April 2019 $25,000
Small business entity From 7.30pm 12 May 2015 7.30pm 2 April 2019 – 30 June 2020 $30,000
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