Articles Blog
Business Tax Tip – Instant Asset Write-off – 2022 summary
- Details
-
Published on Saturday, 03 December 2022 12:36
The ATO allows you the option to choose to use the simplified depreciation rules if you have a small business with an aggregated turnover of less than:
- $10 million from 1 July 2016 onwards;
- $2 million for previous income years.
Aggregated turnover is based on the income of your business and that of any associated businesses.
Simplified depreciation rules for small business include:
- An instant asset write-off for assets that cost less than the relevant threshold (which is supplemented with the temporary full expensing from 7.30pm AEDT on 6 October 2020 to 30 June 2023);
- A general small business pool, which has simplified calculations to work out the depreciation deduction.
There are three temporary tax depreciation incentives available to eligible businesses – temporary full expensing, the increased instant asset write-off and backing business investment.
See Simpler depreciation for small business
In 2020 the government introduced measures to help businesses recover from the impacts of the coronavirus pandemic (COVID-19).
Eligible business entities may be looking at which tax depreciation incentive is right for them.
Only one incentive can apply for an asset. If more than one incentive could apply to an asset the order of application is (subject to opt out choices):
- Temporary full expensing
- Instant asset write-off
- Backing business investment
- General depreciation rules
We have prepared a high-level snapshot to help you work out how these incentives may
Refer to Interaction of tax depreciation incentives.
Need help? Not sure? Call for FREE 30min advice / strategy session today! Aus +61 407 361 596
and also get FREE “Avoid these GST mistakes” – There’s 18 that the Tax Office see regularly – Get them right!”
You can also search for more info you need in the box towards the top right, or click for the list for MORE articles.
~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~
