An instant asset write-off allows small business owners to claim full deduction on a purchased asset up to the value of $30,000 in the year it is purchased and first used or installed ready to be used. This rule applies to new and second-hand assets. The thresholds have changed over the last few years, as indicated in the list below:
| Asset purchase date range | Threshold for each asset |
|---|---|
| 03-Apr-2019 to 30-Jun-2020 | $30,000 |
| 29-Jan-2019 to 2-Apr-2019 | $25,000 |
| 13-May-2015 to 28-Jan-2019 | $20,000 |
| 01-Jan-2014 to 12-May-2015 | $ 1,000 |
| 01-Jul-2012 to 31-Dec-2013 | $ 6,500 |
| 01-Jul-2011 to 30-Jun-2012 | $ 1,000 |
Example of commonly used assets in small business are motor vehicles, machinery, tools and office equipment. If an asset costs more than the instant write-off threshold, small business can use the general depreciation rules. Follow the below link below for more details.
https://www.ato.gov.au/Business/Depreciation-and-capital-expenses-and-allowances/General-depreciation-rules—capital-allowances/