Sorry to be a pain!
I know there was talk on here about how assets bought before March 14th this year that would usually be depreciated over a number of years could have full depreciation claimed this tax period. Does anyone have a link please? My powers of googling cannot find anything.
TIA

shepa1 - 2021-03-28 15:29:00

I got this outline of the situation from my accountant.

$5,000 Low Value Asset Write Off threshold due to expire!!

The threshold for low value assets was temporarily increased to $5,000 exclusive of GST (was $500), from 17 March 2020 to allow the immediate expensing of business assets purchased. This will allow you to deduct the full cost of your business assets with a value of less than $5,000 in the year they are purchased. This is instead of having to spread the cost over the life of the asset.

The threshold will decrease to $1,000 on the 16th of March 2021.

The government increased the threshold to $5,000 to encourage business people to continue investing in their businesses through the period of the COVID-19 pandemic.

This is a good opportunity to acquire any assets worth $1,000 - $5,000 before St Patrick’s Day and claim the deduction in this financial year.

There are some restrictions you need to be aware of:
The assets can not be purchased from the same supplier at the same time as other assets to which the same depreciation rate applies (eg: 3 motorbikes at $2,000 each for the farm, or a dining table for $3,000 and 6 dining chairs at $500 each for the furnished rental property would be over the threshold).

The assets will not become part of an asset that is depreciable, for example, the cost of materials to build a wall in a shed.

They need to be business or rental property assets

Edited by oakcottage at 4:24 pm, Sun 28 Mar

oakcottage - 2021-03-28 16:23:00

Perfect, thank you! Exactly what I was after :-)

shepa1 - 2021-03-28 17:08:00