Small businesses can claim an immediate deduction for most depreciating assets purchased after 12 May 2015 and first used or installed ready for use for a business purpose:
- from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020, if they cost less than $30,000 each
- from 29 January 2019 and before 7.30pm (AEDT) 2 April 2019, if they cost less than $25,000 each
- before 29 January 2019, if they cost less than $20,000 each.
The balance of the general small business pool is also immediately deductible if the balance is less than $30,000 at the end of an income year that ends on or after 2 April 2019 and on or before 30 June 2020 (including an existing general small business pool).
The ‘lock out’ laws have also been suspended for the simplified depreciation rules until the end of 30 June 2020. The lock-out laws prevent small businesses from re-entering the simplified depreciation regime for five years if they have opted out.
The instant asset write-off threshold now includes businesses with a turnover from $10 million to less than $50 million. These businesses can claim a deduction for the business portion of each asset that costs less than $30,000 if they are purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019.