Change from general depreciation rules to simplified depreciation rules

Question

BlakeATO · Accepted Answer

First you'll have to check you're eligible for simpler depreciation for small business. This means you must have a small business with an aggregated turnover of less than $10m. If you move to simplified depreciation, you'll move all existing depreciation assets into the small business pool. Where that pool's value is less than the instant asset write-off threshold, the full value of the pool is deducted. But while temporary full expensing applies, the whole pool gets deducted at the end of the financial year anyway. This means you can deduct the remaining balance in the 2021 financial year if you move to simpler depreciation rules. Keep in mind there are special rules that govern how temporary full expensing rules apply when using simpler depreciation. You can read about this on our simpler depreciation for small business and small business entities using simplified depreciation rules pages.

Explore tax & super topicsExplore tax & super topics

About usAbout us