Extending the $20,000 immediate write off for small business
Under current law, the $20,000 immediate write off ends on 30 June 2017. However, the Government has proposed to extend the concession by 12 months to 30 June 2018 for businesses with an aggregated annual turnover less than $10 million. This means small businesses will be able
to immediately deduct purchases of eligible assets costing less than $20,000 first used or installed ready for use by 30 June 2018.
Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed into the small business simplified depreciation pool (the pool) and depreciated at 15% in the first income year and 30% each income year thereafter. The pool balance can also be immediately deducted if the balance is less than $20,000 over this period.
From 1 July 2018, the immediate deductibility threshold and the balance at which the pool can be
immediately deducted will revert back to $1,000.