The ATO are keen to remind small-business owners to prepare for the end of financial year by making use of these small business tax concessions.
Instant asset write-off
Business assets purchased before 30 June may be able to be claimed as a full deduction in your 2019 tax return. The asset must have cost less than the threshold that applied when it was first installed and ready for use.
Using the simplified depreciation rules, assets costing less than the relevant instant asset write-off threshold are written off in the year they are first used, or installed ready-for-use. This threshold applies to each asset irrespective of whether the asset is purchased new or second-hand.
The threshold has changed over the last few years and during the current year as shown in the table below.
| Date range | Threshold for each asset |
| 7:30pm 02/04/2019 to 30/06/2020 | $30,000 |
| 29/01/2019 to before 7.30pm 02/04/2019 | $25,000 |
| 7.30pm 12/05/2015 to 28/01/2019 | $20,000 |
| 01/01/2014 to prior to 7.30pm 12/05/2015 | $1,000 |
| 01/07/2012 to 31/12/2013 | $6,500 |
| 01/07/2011 to 30/06/2012 | $1,000 |
In working out the amount you can claim, you must subtract any private use proportion. The balance (that is the proportion used in earning assessable income) is generally the taxable purpose proportion. While only the taxable purpose proportion is deductible, the entire cost of the asset must be less than the threshold.
Note that if you later sell or dispose of an asset for which you claimed an instant asset write-off, you include the taxable purpose proportion of the amount you received for the asset in your assessable income.
Prepaid expenses
Expenses such as rent, registration fees and insurance paid before 30 June that end in the next financial year can be claimed as a deduction in this year’s tax return.
Simplified trading stock calculation
If the estimated difference between your opening and closing trading stock is $5,000 or less, you don’t need to do a stocktake. Instead, you can include the same amount for your opening and closing stock in this year’s tax return.
Accelerated depreciation for primary producers
If you’re a primary producer, you can claim a deduction in your 2019 tax return for:
- fencing
- water facilities
- assets used to store fodder that you bought (or first used or had installed ready for use) on or after 19 August 2018.
