In the recent Federal Budget, the government announced a series
of measures to assist small businesses, with one of these being an
immediate write-off for depreciating assets that cost less than
$20,000 This measure, which has now been written into law, applies
from the 2015 Budget night (7.30pm, May 12) to June 30, 2017.
At a glance
Before this write-off measure was announced, eligible small
businesses were allowed to immediately deduct the cost of assets
acquired for less than $1,000. The effect of the latest
announcement is that the $1,000 threshold has been temporarily
increased to $20,000. The threshold reverts to $1,000 after June
30, 2017.
Eligible "small business entities" can elect to use
the simplified capital allowance rules. But note that this measure
also disables the "five-year lock out" rule, so that
businesses that previously opted out of the small business capital
allowance rules can take advantage of the concession. A "small
business entity" is
