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$20k instant asset write-off
$20k instant asset write-off


Peter Bayliss avatar
Written by Peter Bayliss
Updated over a week ago

Back in 2015, the government announced that if you are a small business with a turnover of less than $10 million, you can write off the business portion of assets costing less than $20k.

However this has only been a temporary allowable deduction and was due to finish on the 30th of June 2018. The great news is that the government recently announced in the 2018 federal government that this will be extended to the 30th of June 2019.

So what does this mean for you?

Basically if you have an ABN or operate a business through a company or trust and your turnover is less than $10 million, the any asset you purchase under $20k can be fully depreciated at the date you receive and install the asset. 

However something that needs to be kept in mind is the depreciation is still at the business use percentage.

For example, if you purchase a vehicle for $18k and your log book percentage is 80% then the depreciation you can claim is as follows:

$18k x 80% = $14,400

If you purchase a fancy computer system for $15k and it is used 100% for the business, then you can claim the full $15k as a depreciation expense. 

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