Claiming the $20,000 instant asset write-off

Businesses with an annual turnover less than $10 million (from 1 July 2016) can claim the $20,000 instant asset write-off.

Eligible businesses can take advantage of the instant asset write-off for the business portion of their assets, providing they bought and installed the assets for less than $20,000 each.

Avoid underclaiming by applying the simplified depreciation rules. Always ensure to write-off eligible assets costing less than $20,000 each and were bought, used and installed ready to use, from 7.30pm (AEST) on 12 May 2015 – 30 June 2018. Pool the majority of other depreciating assets that cost $20,000 or higher and claim a 15 per cent deduction in the first year and a 30 per cent deduction every following year.

Write-off the small business pool balance providing it is less than $20,000 before applying any other depreciation deduction at the end of the income year and make sure to only claim a deduction for the portion of the asset that is used for business or other taxable purposes.

The current instant asset write-off was meant to apply till 30 June 2018, however the Government has proproposed extending till 30 June 2019.

Should you require any assistance please contact our office on (03) 9728 1448.