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Fixed Assets

On 17th March 2020, the government announced that for one year, any assets purchased for a business under $5,000 (exc GST) can be expensed in the year it is purchased.  This means the full cost of that asset can be claimed as a deductible expense in that period.

As this was only a short term adjustment, this is due to finish on 16th March 2021 (yes next week) and the threshold reduces to $1,000 (exc GST) from that point on.  If you are planning any fairly large purchases prior to 31 March 2021, now might be a good time to do so.

You can also now claim depreciation on commercial buildings for the 2021 financial year.  Previously the rate was set at 0 and the applicable depreciation rates are now 2% DV and 1.5% SL.  This does not include residential buildings.

More on this here.