Last year the Government passed legislation that temporarily increases the low-value asset threshold for depreciation from $500 to $5,000. This will allow you to deduct the full cost of your business assets with a value of less than $5,000 in the year you purchased them. This is instead of having to spread the cost over the life of the asset.
The Government is only raising the threshold for a short time until 16 March 2021. They’re doing this so you and other business people keep investing in their businesses throughout the COVID-19 outbreak.
For assets purchased on or after 17 March 2021, this threshold will be permanently increased from $500 to $1,000.
Because of the short timeframe, we recommend that you consider bringing forward any planned asset expenditure so you can take advantage of this concession before 16 March 2021.
Contact us to discuss this further.