• A wide range of expertise

    Our clients include individuals, professionals and small, medium and family businesses.

  • See beyond the numbers
  • We have the experience

    TWF Partners has been in existence for over 30 years.

  • Turning your vision into value
  • Providing a range of services

    to help you meet your taxation, financial and corporate requirements.

$20,000 Asset Write Off Reminder

 

This 2015/16 Federal Budget incentive, was a short-term measure to allow small businesses an immediate write off for depreciating assets acquired, which costs less than $20,000.

 

 

This measure is still relevant for full 2016 year, but ceases on 1 July 2017.

A prerequisite is a small business entity, which requires firstly a business and secondly annual aggregated turnover of less than $2 million (turnover of entities connected with or affiliates).

The legislation was relatively simple to implement, because the existing threshold for similar deductions had been $1,000, but for acquisitions after budget night and for the next two years, the threshold was lifted to $20,000.

The item does not need to be new.  It does have to be a depreciating asset, which implies it has a limited affective life.

The asset must be used or installed ready for use.

The deduction is limited to the “taxable purpose portion” which means if the asset is used 40% for business purposes and the asset has a cost of less than $20,000, then 40% of the “depreciation” is claimable.

 

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