Extending the $20,000 immediate write-off for small business
The Government has proposed to extend the concession by 12 months to 30 June 2018 for businesses with an aggregated annual turnover less than $10 million.
This means small businesses will be able to continue to immediately write off / deduct purchases of eligible assets costing less than $20,000, first used or installed ready for use, by 30 June 2018.
Assets over $20,000 can continue to be placed on the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% thereafter.
The pool balance can also be immediately deducted if the balance is less than $20,000.
In addition, the current ‘lockout’ laws for the simplified depreciation rules that prevent small businesses from re-entering the simplified depreciation regime for five years if they opt out will continue to be suspended until 30 June 2018.
From 1 July 2018, the immediate deductibility threshold and the balance at which the pool can be immediately deducted will revert back to $1,000.
New measure for the small business CGT concessions
From 1 July 2017, the Government will amend the small business CGT concession to ensure that the concessions can only be accessed in relation to assets used in a small business or ownership interests in a small business.
The small business CGT concessions will continue to be available to small business taxpayers with aggregated turnover of less than $2 million or business assets less than $6 million.