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Businesses (i.e. those with an annual turnover of less than $5 billion) can claim an immediate deduction for depreciable assets they start to use – or have installed ready for use on the following basis:

  • 06/10/20 to 30/06/23 -uncapped immediate write-off for NEW assets or an improvement to an existing asset. For businesses with an annual turnover of less than $50 million, the assets can be second-hand.
  • 12/03/20 to 31/12/20 - assets costing less than $150,000
  • 03/04/19 to 11/03/20 - assets are costing less than $30,000.
  • 29/01/19 to 02/04/19 - assets are costing less than $25,000.
  • Before 29/01/19 - assets costing less than $20,000 each.

Assets that exceed the thresholds can’t be immediately deducted but instead are deducted over time using the general small business pool. Under the pooling mechanism, a deduction for 15 per cent of the cost is allowed in the first income year with a diminishing value rate of 30 per cent deduction on the opening pool balance allowed for each income year after.

Implementation Process and Costs

Purchase the depreciable asset prior to 30th June 2023 for an immediate write-off.