$5,000 Asset threshold to expire on 16th March 2021

Last Year the Government passed legislation that temporarily increased the low-value asset threshold for depreciation from $500 to $5,000. This will allow you to deduct the full cost of your business assets with a value of less than $5,000 in the year they purchased them. This is instead of having to spread the cost over the life of the asset.

The low-value threshold was raised further to allow the immediate expensing of assets purchased on or after 17 March 2020 that cost less than $5,000.

This threshold will expire on 16 March 2021. They did this so you and other business people keep investing in their businesses throughout the COVID-19 outbreak.

For assets purchased on or after 17 March 2021, this threshold will be permanently increased from $500 to $1,000.

So if you need a new computer or asset that is less than $5,000 make sure you purchase it before 16th March 2021 and you can expense the full amount rather than having to capitilise it.