In the past if you were running a small business, you received an immediate write-off for any business related asset that cost less than $1,000. Any assets over $1,000 were allocated to a ‘General Small Business Pool’ and depreciated at a rate of 30% (15% in the first year of being allocated to the pool).
From 1st July 2012 this immediate write-off has increased to $6,500. This represents a significant benefit for small businesses and cash flow. Those allowable items can include Laptops/Computers, Office Desks and large tools. Any assets purchased after 1st July 2012 over the value of $6,500 will continue to be allocated to the General Small Business Pool.
Along with the increase to the immediate write-off threshold, small businesses that purchase a Motor Vehicle after 1st July 2012 can allocate the vehicle to the pool and also immediately write-off $5,000 for vehicles costing greater than $6,500.