Small business owners can choose to use the simplified depreciation rules if they have a small business with an aggregated turnover (the total normal income of the business and any associated businesses) of less than:

  • $10 million from 1 July 2016 onwards
  • $2 million for previous income years.

Under these rules, small businesses can:

  • immediately write-off – deduct their full cost in the year of purchase – most depreciating assets that cost less than $20,000, each that were bought and used, or installed ready for use from 7.30pm (AEST) on 12 May 2015 until 30 June 2018
  • pool most other depreciating assets that cost $20,000 or more in a small business asset pool and claim      
    • a 15% deduction in the first year
    • a 30% deduction each year after the first year
  • write-off the balance of the small business pool at the end of an income year if the balance – before applying any other depreciation deduction – is less than $20,000.

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