Simpler Depreciation Rules
For the 2013 tax year, the government have introduced simpler depreciation rules which will provide additional benefits to many businesses via:
- an increase to the instant asset write-off thresholds,
- consolidation of depreciation pools, and
- accelerated initial deduction for motor vehicles.
Increase to the instant asset write-off thresholds
Previously for assets costing less than $1,000 an immediate tax deduction or write-off was available. This threshhold has now been increased to $6,500 providing a significant tax benefit.
Additionally, if the SBE General Pool balance drops below $6,500 then the entire value of the Pool will be able to be written-off and claimed as a tax deduction.
Consolidation of depreciation pools
All assets previously added to the Long Life Pool and depreciated at 2.5% can now be transferred to the SBE General Pool and depreciated at 30%, again providing a significant tax benefit.
Accelerated initial deduction for motor vehicles
For any motor powered road vehicle we are able to claim an immediate tax deduction for the first $5,000 of the purchase price and then claim the traditional SBE General Pool depreciation of 30% on the balance.
This does not apply to road vehicles if:
- The main function is not related to public road use, or
- If the vehicle's ability to travel on a public road is secondary to it's main function.
Further information contact A Grade Tax Accountants Penrith for all your taxation, accounting, bookkeeping, superannuation, tax returns and tax advice.
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