The Government has passed legislation that increases the low-value asset threshold for depreciation (previously the threshold was $500). This change will allow business to deduct the full cost of business assets instead of having to depreciate the cost over the life of the asset, details as below:
For business assets purchased on or after 17 March 2020 until 16 March 2021, assets cost less than $5,000 are allowed to claim whole amount as expense.
For business assets purchased on or after 17 March 2021, assets cost less than $1,000 are allowed to claim whole amount as expense.
