Here’s the good news on claiming the cost of your business assets.
The $20,000 instant asset write-off threshold has been extended to 30 June 2019. This means you can continue to claim the cost of new or second-hand assets that are less than the threshold of $20,000.
What does it mean for your business?
Your business must have a turnover of less than $10 million to take advantage of $20,000 instant asset write-off.
Using simplified depreciation rules, you can:
- instantly claim the business portion of most depreciating assets that cost less than $20,000 in your tax return for the relevant income year
- only claim a deduction for the portion of the asset used for business or other taxable purposes and not for the portion for private use.
Assets of more than $20,000 can be put into a small business asset pool where you can claim gradual amounts each year.
What are depreciating assets?
A depreciating asset declines in value over time, such as:
- computers
- electrical tools
- furniture
- curtains
- carpets
- cars.
More information
- To talk to someone about your particular circumstances, contact a registered tax agent, your accountant or business advisor.
- Visit the Australian Taxation Office (ATO) website page on the Instant asset write-offor call the ATO on 13 28 66.
Original article:
https://www.business.gov.au/news/20000-instant-asset-write-off-extended
