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.
Maximise Depreciation Deductions – 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 |
