• If you buy an asset and it costs less than $20,000 (net gst. Including GST will be $22,000), you can immediately deduct the business portion in your tax return. 
  • The $20,000 threshold applied from 12 May 2015 and will reduce to $1,000 from 1 July 2018.
  • You are eligible to use simplified depreciation rules and claim the 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 (increased from $2 million on 1 July 2016), 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. They will continue to be deducted over time using the general small business pool. You write-off the balance of this pool if the balance (before applying any other depreciation deduction) is less than $20,000 at the end of an income year.



Reference:

https://www.myob.com/au/blog/the-20000-tax-write-off-what-is-it-and-how-do-i-get-it/ 

https://www.ato.gov.au/Newsroom/smallbusiness/Lodging-and-paying/$20,000-instant-asset-write-off/

Last modified: 30 Jun 2017 QC 33726