Small business owners were glad to hear the $20k asset write-off was to be extended for a further 12 months in the 2017/18 Federal Budget. The Bill has now passed through Parliament receiving Royal Assent on 22 June 2017.
The concession continues to be available for small businesses from 1 July 2017 to 30 June 2018. This means those businesses with aggregated turnover of less than $10 million can write-off assets in their 2016-17 return that cost less than $20,000 each.
Importantly, the definition of a small business has been extended to include many more businesses following the increase in small business aggregated turnover threshold from $2 million to $10 million from 1 July 2016.
To use simplified depreciation rules correctly you must:
· write off eligible assets costing less than $20,000 each
· pool most other depreciating assets that cost $20,000 or more
· write off the small business pool balance if it is less than $20,000 at the end of an income year
· only claim a deduction for the portion of the asset used for business or other taxable uses.
The $20,000 write-off threshold now applies until 30 June 2018. For further information on the Asset Write-off please follow this link or contact our office via email or phone (07) 3446 5906.