2-month extension of $20,000 instant asset write-off
The Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018 has now passed through Parliament without amendment. The Bill makes changes to the tax law to extend by 12 months the period during which small businesses can access expanded accelerated depreciation rules for assets that cost less than $20,000. The threshold amount was due to revert to $1,000 on 1 July 2018, but will now remain at $20,000 until 30 June 2019.
Australian Small Business and Family Enterprise Ombudsman Kate Carnell has welcomed the extension but reminded small businesses and family enterprises that the instant asset write-off is a tax deduction not a rebate - your small business needs to make a profit to be eligible to claim the benefit.