Instant Asset Write off Abolition
Just an update for all of the small business owners here. There is a draft Bill currently under debate in Federal Parliament which seeks to repeal the $6,500 instant asset write off, and also the $5,000 accelerated depreciation on motor vehicle purchases. The proposed repeal date in the Bill is 1 January 2014 - so anything prior is still eligible. The Bill proposes a reversion to the $1,000 threshold, and also to scrap the motor vehicle accelerated depreciation altogether.
Please note that at this stage this is a Bill only and is subject to passage through Parliament. Our understanding is that there is an expectation this will pass (but there is no certainty).
So, for those intending on buying capital assets in the next six months that cost more than $1,000 and less than $6,500, or those looking to purchase a motor vehicle, it may be worth bringing it forward to pre 31 December 2013.