Businesses may purchase and claim a deduction for each asset that cost less than the $30,000 threshold. For example, in the same financial year a business may purchase a new van worth $22,000 and then purchase a trailer at a cost of $14,000. The business can claim both as each of the assets are under the $30,000 threshold.
For assets costing $30,000 or more the general depreciation rules apply.
Also, if your business has a turnover of less than $10 million you can claim a deduction for each asset that cost less than the threshold that applied when the asset was first used or installed ready for use. The thresholds are:
- $30,000, from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020;
- $25,000, from 29 January 2019 to 7.30pm (AEDT) on 2 April 2019; and
- $20,000, before 29 January 2019.
On your tax return, claim your instant asset write-off deduction under 'Small business entity simplified depreciation'.
The usual rules for claiming deductions still apply. You can only claim the business portion of the expense, and make sure you have records to prove it.