Contact: ESV Chartered Accountants (New South Wales, Australia)
On 2 May 2010, the government announced instant asset write-off and simplified depreciation changes for small business.
The changes will enable small businesses to write-off all depreciable assets where the taxable purpose proportion is less than $6,500 in the income year in which they start to use the asset, or have it installed ready for use.
It also allows for most other assets to be depreciated in a single pool at a 30% rate.
The change applies from 1 July 2012, so if you’re a small business thinking of acquiring an asset under the threshold amount, it may pay to delay your purchase until after 30 June 2012.
Contact ESV if you’re unsure whether you qualify as a small business or are unsure of the taxable purpose proportion of your asset.
