Depreciation Rules for Small Businesses (turnover less than $2M)

If you fall into the small business category, up until June 30, 2017 you can obtain an immediate deduction for assets costing LESS than $20,000. This is not restricted to only one asset. You may purchase multiple items as long as they all cost less than $20,000 (GST exclusive figure if you are GST registered).

In-house software and horticultural plants are excluded from these rules. If you fall into the category of being a small business who previously ceased accessing SBE concessions – the five year period applied to you that would not have allowed you to access the SBE concessions, including the $20,000 immediate deduction concessions.  

However, the good news is that this five year rule has been relaxed and until 30-6-17 these businesses may re-enter the SBE regime without waiting 5 years to access the additional concessions. All Primary Producers may claim the following: 

• An immediate deduction is allowed for capital expenditure on fencing and water facilities.

• Fodder storage assets can be depreciated over 3 years, e.g. silos, above ground bunkers, liquid feed storage tanks & sheds.