$20,000 instant asset write-off – Buy before 30 June 2018!

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If you buy an asset by 30 June 2018 and it costs less than $20,000, you can write off the business portion in your 2018 tax return.

You are eligible to use simplified depreciation rules and claim an immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

- you have a turnover less than $10 million, and

- the asset was first used or installed ready for use in the income year you are claiming it in.

Assets that cost $20,000 or more can't be immediately deducted though they will continue to be deducted over time using the general small business pool.

The $20,000 threshold applied from 12 May 2015 and will reduce to $1,000 from 1 July 2018.

There is a proposal to extend the $20,000 instant asset write-off threshold to 30 June 2019 though this is not yet Law.

Please contact our office if you wish to discuss this matter further.