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Business Tax Tips – Update – 2014 Instant Asset Write-Off $6500 No Longer From January 2014

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Business Tax Tips – Update – 2014 Instant Asset Write-Off $6500 No Longer From January 2014

Update – 2014 Instant Asset Write-Off $6500 No Longer From January 2014

 

With the new government in Sept 2013, the Liberal Coalition has withdrawn the $6500 instant asset write-off brought in by the Labour government, no longer available from 1 January 2014.  We explained the old measures last year, and they apply for the 2012-2013 tax year, but have now been repealed. From the ATO website 

Instant asset write-off and simplified depreciation

As part of its 2013 election commitments, the government announced changes to the instant asset write-off provisions for small business. The changes are expected to come into effect from 1 January 2014.

From the 2012–13 income year small businesses have been able to write-off depreciating assets costing less than $6,500 in the income year in which they start to use the asset, or have it installed ready for use. They can also depreciate most other assets in the general small business pool at a rate of 15% in the first year and 30% thereafter.

If the proposed changes are enacted, the threshold will change and only assets costing less than $1,000 (acquired and installed ready for use after 31 December 2013) will be eligible for immediate write-off. Assets costing $1,000 or more will need to be depreciated in the general small business pool.

Assets costing less than $6,500, acquired and installed ready for use by the small business between 1 July 2013 and 31 December 2013, will still be eligible to be immediately written-off.

A Bill containing the provision to give effect to the change was introduced into parliament on 13 November 2013.

Legislation and supporting material

The following legislation was introduced into parliament on 13 November 2013.

Minerals Resource Rent Tax Repeal and Other Measures Bill 2013External Link documents the progress of the legislation.

Explanatory Memorandum External Link. Documents the detail of the legislation, scroll down to the section Changes to the capital allowances for small business entities  for details about the $6500 asset tax concession changes.

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Author: accountkeepingplus

Administration, bookkeeping and compliance for small business, and Self-Managed Super Funds (SMSF) Training, trouble-shooting, or we can do the books and payroll for you! Self Managed Superannuation Fund Service Provider, Free support MYOB Certified Consultant, Reckon/QuickBooks Professional Partner.

2 thoughts on “Business Tax Tips – Update – 2014 Instant Asset Write-Off $6500 No Longer From January 2014

  1. FYI it has not been repealed yet. Now looking at 1/7/14 if Bill is passed

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