If your business purchases an asset classified as low-value, you can claim the entire cost as depreciation immediately rather than spreading it over several years. This simplifies accounting and provides an immediate tax benefit.
What Qualifies as a Low-Value Asset?
From 17 March 2021, assets costing less than $1,000 qualify for immediate depreciation.
- If you are registered for GST, the cost should be excluding GST.
- If you are not registered for GST, the cost should be including GST.
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