Small businesses (i.e. those with an annual turnover of less than $50m) can claim an immediate deduction for depreciable assets they start to use – or have installed ready for use on the following basis:

1.  03/04/19 to 30/06/20 - assets costing less than $30,000.

2.  29/01/19 to 02/04/19 - assets costing less than $25,000.

3.  before 29/01/19 - assets costing less than $20,000.

Examples of depreciable assets include cars, office furniture, equipment, art work, coffee machines, etc. The important thing is the depreciable assets are purchased and used in the small business.

Assets which exceed the thresholds and can’t be immediately deducted are deducted over time using the general small business pool, as follows:

1.  15% of the cost is allowed in the first income year.

2.  30% each year thereafter. 

If you would like to discuss further please contact us:
McNamara & Company - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com

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