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  • #987734
    fanixaus
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    I take it this has now dropped from $6500 to only $1000. What does instant assest write off mean? For example, lets say I buy an laptop for my company (Pty Ltd), costing $900, how will this write-off come into play?

    https://www.ato.gov.au/General/New-legislation/Previous-years/Direct-taxes/Instant-asset-write-off-and-simplified-depreciation/

    #1164115
    affgar
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    Well …. you throw your laptop under the nearest truck or bus! It then becomes a declarable ‘right off’. From $900 to $0 in an instant …. lol :D

    Instant right off is a small business full deduction claim rather than an asset depreciation schedule over time.

    Accountants will be able to help more thoroughly. :)

    #1164116
    Past-Member
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    Actually it’s $1000 plus GST, so any item up to $1100 incl. GST becomes an instant write off instead of being depreciated. And yes, for a brief time last year it was $6500.
    :(

    #1164117
    Timmy35851
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    KarenC, post: 190092 wrote:
    Actually it’s $1000 plus GST, so any item up to $1100 incl. GST becomes an instant write off instead of being depreciated. And yes, for a brief time last year it was $6500.
    :(

    Is this still correct?

    I’m currently trying to research whether this is going to be the case or not (am seeing accountant next week) as I am wanting to buy some assets for starting a new business >$1,000.

    My understanding is that this instant asset write off is linked to the Mineral Resources Rent Tax (MRRT) which is currently being repealed – hence the decrease to $1,000. It was not upheld in the senate in late March 2014.

    From the information I can find on the internet, the bill is now not being reviewed again by the senate until 1 July 2014. If the Bill IS passed on 1 July 2014 – will it still be retrospective to 1 January???

    #1164118
    Anonymous
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    Hi Timmy,

    It all sounds very confusing. Stay tuned and I’m sure one of our resident tax experts will be able to clarify it for us.

    In the meantime, welcome to Flying Solo, and best of luck for your new business. :)

    Jayne

    #1164119
    James Millar
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    Timmy35851, post: 190327 wrote:
    Is this still correct?

    I’m currently trying to research whether this is going to be the case or not (am seeing accountant next week) as I am wanting to buy some assets for starting a new business >$1,000.

    My understanding is that this instant asset write off is linked to the Mineral Resources Rent Tax (MRRT) which is currently being repealed – hence the decrease to $1,000. It was not upheld in the senate in late March 2014.

    From the information I can find on the internet, the bill is now not being reviewed again by the senate until 1 July 2014. If the Bill IS passed on 1 July 2014 – will it still be retrospective to 1 January???

    Yes it can still be retrospective. Makes it difficult for taxpayers (and accountants) to plan effectively.

    Helping build better businesses and better lives with expert financial and taxation advice. [email protected] www.360partners.com.au 03 9005 4900
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