There have been some changes to the small business accelerated depreciation rules in the recent 2023-2024 Budget. 

The Government has announced that there will be no further extension of the Temporary Full Expensing provisions.

Instead, from 1 July 2023 the instant asset write-off threshold has been reintroduced. Small businesses with an aggregated turnover of less than $10 million, will be able to immediately deduct the full cost of qualifying assets costing less than $20,000 that are first used or installed ready for use between 1 July 2023 and 30 June 2024. After this date, the instant asset write-off threshold will revert to $1,000.

Assets valued at $20,000 or more can be placed into the small business depreciation pool and depreciated at 15% in the first income year and 30% each income year thereafter.

It is important that businesses wanting to take advantage of the Temporary Full Expensing incentives available until 30 June 2023 act quickly to purchase and install qualifying assets and claim the costs in the 2023 financial year. 

If you would like further information in relation to this matter, please don’t hesitate to contact our office on (07) 4688 8200.