Claiming the $20,000 instant asset write-off

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Businesses with an annual turnover less than $10 million (from 1 July 2016) can claim the $20,000 instant asset write-off.

Eligible businesses can take advantage of the instant asset write-off for the business portion of their assets, providing they bought and installed the assets for less than $20,000 each.

Avoid underclaiming by applying the simplified depreciation rules. Always ensure to write-off eligible assets costing less than $20,000 each and were bought, used and installed ready to use, from 7.30pm (AEST) on 12 May 2015 - 30 June 2018. Pool the majority of other depreciating assets that cost $20,000 or higher and claim a 15 per cent deduction in the first year and a 30 per cent deduction every following year.

Write-off the small business pool balance providing it is less than $20,000 before applying any other depreciation deduction at the end of the income year and make sure to only claim a deduction for the portion of the asset that is used for business or other taxable purposes.

The current instant asset write-off was meant to apply till 30 June 2018, however the Government has proposed extending till 30 June 2019.

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