Simpler Depreciation Rules

Taxation Services Penrith

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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