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Revision of Capital Allowances for Small Business Entities

As a result of the 2013 election, the Government announced changes to the instant asset write-off provisions for a small business. These changes have only recently come into effect from 1 January 2013.

In accordance with the changes, with write-off depreciating assets, the threshold will change and only assets costing less than $1,000 (acquired and installed ready for use after 31 December 2013) will be eligible for immediate write-off. Assets costing $1,000 or more will need to be depreciated in the general pool for small businesses.

Also, assets costing less than $6,500, acquired and installed ready for use by the small business between 1 July 2013 and 31 December 2013, will still be eligible to be immediately written off.

This change comes as the mining tax repeal Bill passed through the House of Representatives. According to the Institute of Chartered Accountants Australia, the Bill also proposes to repeal or revise a number of tax related-measures. One such revision is to revise the capital allowances for small businesses. This includes:

  • Small businesses would be able to claim a deduction for the value of a depreciating asset that costs less than $1,000.
  • Small businesses would be able to claim a deduction for an amount included in the second element of the cost of a depreciating asset that was first used or ready to use in the previous income year.
  • Small business entities would be able to allocate depreciating assets that cost $1,000 or more to their general small business pool.
  • Assets allocated to the general small business pool would depreciate at a rate of 15% in the year they are allocated and a rate of 30% for subsequent years if they value of a small business entity’s general small business pool is less than $1,000 at the end of the income year, the small business entity would be able to claim a deduction for the entire value of the pool.

For more information on these changes and how they affect you please feel free to get in touch with the team here at Fortis Accounting Partners.  You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.

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Reshika Kumar

Administration Officer

With her kind, caring and approachable nature, Reshika never fails to provide a positive, welcoming experience for our clients, assisting them as they walk in our door or call our office. She understands the power of customer service and is always willing to lend a hand.

With her fun and relaxed personality, Reshika is incredibly creative, especially when it comes to finding solutions for evolving challenges, from financial matters to marketing requirements and beyond. Holding a Masters of Business Administration with a major in Marketing and significant experience in the banking industry, Reshika has a unique combination of skills which makes her a real asset to Fortis.

Reshika is motivated to reach new heights, take risks and develop her career by working alongside Bernadette, our Client Administration Manager, and having the opportunity to learn new things such as new platforms and procedures.

Reshika is passionate about fitness and does not miss an opportunity to take advantage of the gym. Despite Reshika’s relaxed personality it all goes out the door when card or board games are involved!