From 1st of July 2012, small businesses (those with a turnover under $2 million) can take advantage of changes to the depreciation rules.
The 3 changes are:
1. An increase to the instant asset write-off threshold. You can now claim an instant deduction for most depreciating assets purchased that cost less than $6,500. The threshold was previously $1,000.
For example, a laptop costing $2,000 can now be immediately expensed, rather than set up as an asset on the balance sheet.
2. Accelerated deductions for motor vehicles. From 2012-13 if you purchase a motor vehicle for your business, you can claim an immediate $5,000 depreciation deduction. The remainder of the cost can be deducted through the general small business pool at 15% for the first year and 30% for subsequent years.
For example, a ute purchased for $20,000 in September 2012, and used 80% in the business. The depreciation in 2012-13 would be calculated as:
$5,000 + 15% * ((80% * $20,000)-$5,000) = $6,650.
3. Simplified pooling. Most depreciating assets that cost $6,500 or more can now be pooled under the simplified depreciation rules and deducted at the one rate of 30%. However, for the first year, the depreciation rate is 15%.
The 3 changes are:
1. An increase to the instant asset write-off threshold. You can now claim an instant deduction for most depreciating assets purchased that cost less than $6,500. The threshold was previously $1,000.
For example, a laptop costing $2,000 can now be immediately expensed, rather than set up as an asset on the balance sheet.
2. Accelerated deductions for motor vehicles. From 2012-13 if you purchase a motor vehicle for your business, you can claim an immediate $5,000 depreciation deduction. The remainder of the cost can be deducted through the general small business pool at 15% for the first year and 30% for subsequent years.
For example, a ute purchased for $20,000 in September 2012, and used 80% in the business. The depreciation in 2012-13 would be calculated as:
$5,000 + 15% * ((80% * $20,000)-$5,000) = $6,650.
3. Simplified pooling. Most depreciating assets that cost $6,500 or more can now be pooled under the simplified depreciation rules and deducted at the one rate of 30%. However, for the first year, the depreciation rate is 15%.
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