The instant write-off deduction for assets costing less than $20,000 is due to come to an end on 30 June 2018. From 1 July 2018, the instant write off will reduce to $1,000.

You're eligible to use simplified depreciation rules and claim the immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

you have a turnover less than $10 million, and
the asset was first used or installed ready for use in the income year you are claiming it in.

Any assets costing more than $20,000 will be depreciated using the small business General Pool diminishing value depreciation rates of 15% in the first year and 30% for future years.

Tax Tip

If you're thinking of purchasing an asset costing less than $20,000, consider bringing forward the purchase prior to 30 June 2018 to take advantage of the immediate deduction available.