Small Business Depreciation Allowance Claims

Author: Aaron Chen  Date Posted:26 November 2019 

On 12th of May 2015, the Australia new government budget included the Small Business Depreciation Allowance (See the original policy from government website here), below is the summary.

1. Immediate write-off of assets to a maximum of $20,000.

2. The items purchased for which a write-off claim is made must relate to the income producing or trading of that business/company.


3. The full amount of the cost may be claimed from the business/company income to allow a legitimate reduction in the tax bill.


4. Available to companies and business which have an ABN.


5. Available to companies and business which have an annual turnover less than $2.00m.


6. There is no limit on the number of items a business/company can claim.


7. This small business tax deduction incentive is available to businesses and companies from 7.30 pm, 12/5/15 to 30/6/17, subject to Senate approval.


8. For items costing in excess of $20,000, say, $50,000, the $20,000 incentive amount may be claimed, but the balance of $30,000 will quality for a less generous and more complicated tax break associated with general depreciation claims.


9. What can be purchased? Any new or used plant/equipment, machinery, vehicles, including trailers, motorbikes, lawnmowers, commercial food equipment, coffee machines, dishwashers, kitchens, tables/chairs, carpets, computer hardware and printers, photocopiers, tools, generators, forklifts, hot water systems, water tanks, air-conditioning units, sound and security systems, anything used to assist the operation of a business.  You cannot use the incentive claim for business working capital requirements or stock. Horticultural plants and in-house software also do not qualify.


Since the financial year is approaching, C-Mac would like to remind our customers that we have some nursery equipment in stock, which qualifies for depreciation allowance.


Call us on (02) 9631 6000 and ask Steve for further details about products in stock.

Please Note:

C-Mac doesn't provide any tax advices and all your depreciation allowance claims are subject to the latest policies from the government.

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