2012 changes to small business depreciation rules
- Instant Write Off Threshold
The instant asset write off for small businesses will increase from $1,000 to $6,500. Allowable items may include photocopiers, laptops, fridges and desks.
- Other Depreciation Assets
Small businesses will be able to write off all other depreciation assets in a single depreciation pool at the rate of 30 per cent. This means they can consolidate the long life small business pool and the general small business pool into a single depreciation pool to be written off at one rate.
- Motor Vehicle Write Off
Small businesses will be able to claim an accelerated initial deduction up to $5,000 for vehicles costing $6,500 more acquired during the 2012/2013 income tax year.
These changes will provide significant opportunities to small businesses in terms of initial depreciation write offs.