Budget Boost – Immediate asset write off for small businesses

2015 budgetIf you are an eligible business that has an annual turnover of less than $2M you may be able to claim an immediate write off for any number of assets that you purchase that cost less than $20,000.

Please find below detail on the immediate asset write off.

Start Date:        12 May 2015, from 7:30pm

End Date:          30 June 2017


‘Small Business Entity’ as defined by the tax office. Excluding GST Turnover of less than $2M in the previous financial year, as well as estimated turnover of less than $2M in the current financial year. If you subsequently go over the $2M threshold by years end, the concession is lost and you have to depreciate the item under normal rules.   Businesses cannot create separate, smaller entities to access the concession. Grouping/Aggregation rules catch business with similar ownership etc.

Asset Value:

$20,000 or less. The depreciation value of the asset generally excludes GST, but can include items like stamp duty which are normally added to the cost base of the asset. If purchasing a number of items on one transaction and the total amount is greater than $20,000 you may also qualify (for example manufacturing equipment for $100,000 that involves a number of separate items that are each under $20,000. Any items separately listed with a value less than $20,000 you may be able to claim each item)


Some assets may be excluded, like Horticultural plants (grapevines), capital works to buildings and “In-House” software. There are different depreciation rules for these kinds of assets.

The above is a guide only as to our understanding of the announcement and we recommend that you check with your accountant or tax adviser to confirm your eligibility before proceeding with your purchase.

If we can assist with finance for your equipment purchase or you require any further information simply request a quote and one of our team will make contact with you.