Dear Valued clients,
This year the Government passed legislation that temporarily increases the low-value asset threshold for depreciation from $500 to $5,000.
This will allow you to deduct the full cost of your business assets with a value of less that $5,000 in the year that you purchase them.
This is instead of having to spread the cost over the life of the asset.
The Government is only raising the threshold for a short time until the 16 March 2021.
The change has been implemented to encourage people to keep investing in their businesses during the effects of COVID-19.
For assets purchased on or after 17 March 2021, this threshold will be permanently increased from $500 to $1,000.
If your business does need to invest in new assets, we encourage you to do so before 16 March 2021.
Please contact us here at True North if you require further information regarding this Low-Value asset threshold for depreciation.
The True North Team.