Instant asset write-off for eligible businesses

SMALL BUSINESS DEPRECIATION – TEMPORARY FULL EXPENSING – ACCELERATED DEPRECIATION RULES

Small business can now claim deductions under new laws known as temporary full expensing which is for new and second-hand depreciating business assets to the extent the asset is used for business.

There is no general limit on the cost of eligible assets to which you can apply temporary full expensing, but there may be specific cost limits on certain assets: such as · passenger vehicles (designed to carry a load of less than one tonne and fewer than 9 passengers) to which the $59,136 limit may apply.

Government legislation has passed to allow the above tax deductions up to 30 June 2022.

Business that use simplified deduction rules can now use the temporary full expensing rules instead of the instant asset write-off which is a separate legislation (Division 40) for which limits came into force for business asset depreciation claims to $1,000 per asset EX GST from 31/12/2020.