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SBE Immediate Deductions Threshold

With the passing of the Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2017, the ability for Small Business Entity (SBE) taxpayers to claim an outright deduction for depreciating assets costing less than $20,000 has been extended until 30 June 2018.

Prior to the passage of this legislation, the outright deduction threshold for SBEs in relation to depreciable assets was schedules to revert back to $1,000 as of 1 July 2017.

To qualify for an immediate deduction for depreciating assets purchased by an SBE tax payer costing less than $20,000, the asset needs to be first used or installed ready for use on or before 30 June 2018.

Editor: remember that, as of 1 July 2016, the ‘aggregated turnover’ threshold to satisfy the requirements to be an SBE taxpayer has increased from $2 million to $10 million, so more business taxpayers than ever before will be eligible for the $20,000 immediate deduction for depreciable assets. We will have to wait until the 2018/19 Budget to see if the $20,000 threshold will really revert back to $1,000 as of 1 July 2018.

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Bottrell Group
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