In the 2017-18 Budget, the Government announced that they were extending the immediate write off for assets that cost less than $20,000 for an additional 12 months, until 30 June 2019, for small businesses (i.e. aggregated turnover threshold of $10 million). This change is not yet law.
- Immediate deductions for most depreciating assets that cost less than $20,000 that are acquired and installed ready for use, up to and including, 30 June 2019. These accelerated depreciation rules apply to both new and second hand assets. Excluded assets are horticultural plants including grapevines, in-house software allocated to a software development pool and capital works.
- The depreciating assets acquired and installed ready for use, up to and including, 30 June 2019 for $20,000 or more must be pooled and depreciated at 15% in the first year and 30% each year thereafter.
- Write off the balance of your small business pool at the end of a financial year if the balance, before applying the depreciation deduction, is less than $20,000.
The current $2 million turnover threshold will be retained for access to the small business capital gains tax concessions.
In addition to the extension of the immediate write off, primary producers are eligible for the following concessions:
- Primary producers can claim immediate deductions for capital expenditure on water facilities including dams, tanks, bores, irrigation channels, pumps, water towers and windmills; and fencing assets.
- Primary producers can also claim fodder storage assets such as silos and tanks used to store grain and other animal feed assets over 3 income years.