See Last modified: 19 Jun 2019 QC 21100

  • Using the: simplified depreciation rules, assets costing less than the relevant instant asset write-off threshold are written off in the year they are first used, or installed ready-for-use. 
  • This threshold applies to each asset irrespective of whether the asset is purchased new or second-hand. 
  • Motor vehicles are included. 
  • For the figures below, 
    • If you are registered for GST, figures below are GST excluded / net gst
    • If you ARE NOT registered for GST, figures below are GST inclusive

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  • 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: