Eligible businesses have been able to claim an immediate deduction for the business portion of the cost of an asset since 6 October 2020. This will end on 30 June 2023.
What does this mean for you?
Any business wanting to take advantage of an immediate deduction must ensure the asset is not just purchased, but installed and ready for use by 30 June 2023. The exception is motor vehicles which are subject to the current car cost limit of $64,741.
Key Dates
From 1 July 2023, for small businesses using simplified depreciation, the cost threshold for an instant write-off reverts back to $1,000. For all other assets, the business portion will need to be depreciated over their effective lives.
If you have any questions, please contact a member of the team.
