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Firm Announcements and Tax Updates

Business Changes and updates

New rules for immediate write-offs

Thanks to recent changes to the law, SBE taxpayers may be entitled to an immediate deduction in the 2019 income year for acquiring certain depreciating assets costing up to $30,000 (net of any entitlement to GST input tax credits), if the assets are first acquired on or after 7.30pm AEST on 12 May 2015 and first used, or installed ready for use, between 7:30pm AEDT on 2 April 2019 and 30 June 2019.

Assets first acquired on or after 7.30pm AEST on 12 May 2015 but before 7:30pm AEDT on 2 April 2019 may still be eligible for immediate write-off, although a lower threshold applies, as follows:

The immediate write-off threshold is $20,000 for assets first used or installed ready for use between 1 July 2018 and 28 January 2019.

The immediate write-off threshold is $25,000 for assets first used or installed ready for use between 29 January 2019 and 7:30pm AEDT on 2 April 2019.

On top of this, for the first time, medium sized businesses (with an aggregated turnover of at least $10 million but less than $50 million) may also be eligible to claim an immediate deduction for assets that are first acquired and first used (or installed ready for use) from 7:30pm AEDT on 2 April 2019 (though not the other simplified depreciation rules).

Andy Barras