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$20,000 Depreciation Write Off

13th May 2015

Small businesses (turnover under $2million) will now be able to claim an immediate deduction (not a refund of tax) for any depreciating asset they purchase for less than $20,000. For assets over this amount, small businesses can elect to use the pooling arrangements and depreciate the cost of such assets at 15% in the first year, and 30% on the opening pool value every year thereafter.

Excluded Assets Include:

Horticultural plants - subject to their own ‘uniform capital allowance’ rules (UCA);
Capital works – subject to their own ‘capital works’ depreciation rules;
Assets allocated to a low-value pool or software development pool - subject to the deduction rates applicable under those rules;
Assets leased out to another party on a depreciating asset lease.