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:
- electrical tools