The $20,000 instant asset write-off continues for small businesses until at least 30 June 2018.

Small businesses with a turnover of less than $10 million can deduct the business portion of each capital asset they purchase that costs less than $20,000.

The $20,000 threshold was set to reduce back to $1,000 on 1 July 2017 until it was announced in the Federal budget that it will be extended for another year and is now expected to reduce to $1,000 on 1 July 2018.

The possibility of being extended for another year exists but can’t be guaranteed.

For eligible businesses, use it while it is available.

Capital assets costing more than $20,000 can be added to a general small business pool where they are depreciated at 15% for the first year and 30% for subsequent years. Where the pool balance falls below $20,000 at the end of the year, the pool balance may be written off.

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