You are eligible to use these simplified depreciation rules if:
- you have a turnover of less than $10 million (increased from $2 million on 1 July 2016), and
- the asset was first used or installed ready for use in the income year you are claiming it in.
Assets that cost $20,000 or more cannot be immediately deducted, and will continue to be deducted over time using the general small business pool. You can however write-off the balance of this pool if the balance (before applying any other depreciation deduction) is less than $20,000 at the end of an income year.
The $20,000 threshold, which has applied from 12 May 2015, will reduce to $1,000 from 1 July 2018.