Small Business Depreciation/Write-off Changes


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The Henry Tax review of Australia's taxation system was released today (02/05/2010) with good news for small businesses.

The capital allowances provisions will be changed in order to allow small businesses:
  • • to write off immediately assets valued at under $5,000 (compared with the current $1,000 limit) and
  • • to write off other assets (ie assets valued at over $5,000) in one depreciating pool at the rate of 30%. Currently, depreciating assets may be allocated to 2 different depreciating pools. This will not apply to buildings.
The revised rules will apply from 1 July 2012.

The government will consult on the details of the new rules during the 2010/11 year.

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