$20,000 Asset Write Off Reminder
This 2015/16 Federal Budget incentive, was a short-term measure to allow small businesses an immediate write off for depreciating assets acquired, which costs less than $20,000.
This measure is still relevant for full 2016 year, but ceases on 1 July 2017.
A prerequisite is a small business entity, which requires firstly a business and secondly annual aggregated turnover of less than $2 million (turnover of entities connected with or affiliates).
The legislation was relatively simple to implement, because the existing threshold for similar deductions had been $1,000, but for acquisitions after budget night and for the next two years, the threshold was lifted to $20,000.
The item does not need to be new. It does have to be a depreciating asset, which implies it has a limited affective life.
The asset must be used or installed ready for use.
The deduction is limited to the “taxable purpose portion” which means if the asset is used 40% for business purposes and the asset has a cost of less than $20,000, then 40% of the “depreciation” is claimable.
Hot Issues
- Small businesses may ‘collapse under strain of payday super’, IPA warns
- ATO’s hands tied with scrapping on-hold debts, expert says
- What Drives Your Business Growth and Profits?
- Australian Taxation Office (ATO) shifting to firmer debt collection activity
- Why employee v contractor comes down to fine print
- Sharing economy reporting regime for platform operators
- Countries producing the most solar power by gigawatt hours
- Illegal access nets $637 million
- Accessing superannuation benefits.
- Does your business have a company Power of Attorney?
- Labor tweaks stage 3 tax cuts to make room for ‘middle Australia’
- GrantConnect
- 2 in 3 SMEs benefit from instant asset write-off, survey reveals
- Updated guidance on R&D claims
- Do you know how to recover debts?
- Wheat Production by Country
- Types of small business benchmarks
- What is a Commercial Lease?
- ATO warns advisers against suspect R&D tax claims
- The year of workplace law upheaval
- How to Resolve Invoice Payment Disputes
- Raft of revenue tweaks in MYEFO to raise millions
- The Countries that Export the Most Wine in the World
Article archive
- October - December 2023
- July - September 2023
- April - June 2023
- January - March 2023
- October - December 2022
- July - September 2022
- April - June 2022
- January - March 2022
- October - December 2021
- July - September 2021
- April - June 2021
- January - March 2021
- October - December 2020
- July - September 2020
- April - June 2020
- January - March 2020
- October - December 2019
- July - September 2019
- April - June 2019
- January - March 2019
- October - December 2018
- July - September 2018
- April - June 2018
- January - March 2018
- October - December 2017
- July - September 2017
- April - June 2017
- January - March 2017
- October - December 2016
- July - September 2016
- April - June 2016
- January - March 2016
- October - December 2015
- July - September 2015
- April - June 2015
- January - March 2015
- October - December 2014
April - June 2016 archive
- Checklist - Individuals Tax Returns - 2016
- Reminder – Salary and Wages PAYG Shortfall
- $20,000 Asset Write Off Reminder
- Danger for buyers of Australian property of $2 million plus
- Budget 2016-17
- FBT Time
- Fringe Benefits Tax – Company Holiday Home
- Fringe Benefits Tax – Nil
- Estate Planning - early inheritance
- ATO issues SMSF tax warning
- ATO seeks to dispel LRBA panic
- $20,000 Asset Write Off Reminder
- Tax office issues warning on imminent rule change
- Age Pension means-test prevents rational decision-making
- Locking Up Bank Accounts
- ATO figures show property investors missing out on tax breaks
What our clients say about us