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Last year the Government passed legislation that temporarily increased the low-value asset threshold for depreciation from $500 to $5,000.
This allows you to deduct the FULL COST of your business asset purchase (with a value of less than $5,000) in the financial year you purchase them.
The Government has only raised the threshold for a short time until 16 March 2021
They did this so you and other business people keep investing in their businesses throughout the COVID-19 outbreak.
In practice, this means if you purchase equipment to the full value of the $5000 allowance, you would save $1400 in end of year tax, meaning the equipment has only cost your business $3600, A FULL 28% SAVING.
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