On 12 September 2018, the Treasury Laws Amendment (Accelerated Depreciation for Small Business Entities) Bill 2018 was passed by both houses of the Australian Parliament. The legislation amends the Income Tax Assessment Act 1997 and Income Tax (Transitional Provisions) Act 1997 to extend by 12 months to 30 June 2019 the period during which small business entities can access expanded accelerated depreciation rules. From the 2016-17 income year, qualifying small business are those with aggregate turnover below AUD 10 million.
As extended, the expanded accelerated depreciation allows small businesses to claim an immediate deduction for depreciating assets that cost less than AUD 20,000, provided that the asset is first acquired at or after 7.30 pm, by legal time in the Australian Capital Territory, on 12 May 2015, and first used or installed ready for use on or before 30 June 2019. For assets first used or installed on or after 1 July 2019, the immediate deduction cost limit will revert to the prior AUD 1,000, unless a further extension is approved.
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