New Concessional Depreciation Rules

If you’re earning less than a grouped $2m in your business you may benefit from the new concessional depreciation rules for small to medium businesses.

On assets that cost less than $20,000 you can claim an immediate deduction provided you start to use, or install to use, the asset between 12 May 2015 and 30 June 2017.

This rule, designed to help you with cash flow, will revert to a write off thresholds of up to $1,000 from 1 July 2017. Assets valued at $20,000 or more can still be depreciated at 15% in the first income year and 30% each income year thereafter.

New Business Deductions

From 1 July 2016, you can claim an immediate deduction on a range of professional expenses associated with starting a business, such as professional, legal and accounting advice, rather than writing these off over five years as in previous years.

If you have any questions on the application of these rules for your business, please Contact Us.