This measure is still relevant for full 2016 year, but ceases on 1 July 2017.
A prerequisite is a small business entity, which requires firstly a business and secondly annual aggregated turnover of less than $2 million (turnover of entities connected with or affiliates).
The legislation was relatively simple to implement, because the existing threshold for similar deductions had been $1,000, but for acquisitions after budget night and for the next two years, the threshold was lifted to $20,000.
The item does not need to be new. It does have to be a depreciating asset, which implies it has a limited affective life.
The asset must be used or installed ready for use.
The deduction is limited to the “taxable purpose portion” which means if the asset is used 40% for business purposes and the asset has a cost of less than $20,000, then 40% of the “depreciation” is claimable.
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