In another update from the Government, the small business write-off on depreciating assets costing less than $6,500 in the year acquired or installed ready for use has been removed. This concession was put in place on 1 July 2012 and is unavailable from 1 January 2014.
What does this mean for my tax return?
Assets costing less than $1,000 can still be written off immediately. Assets costing $1,000 or more can be pooled and written off over time.
What if I have lodged my 2014 tax return already?
You will need to amend your 2014 tax return and fortunately the ATO will not apply shortfall penalty or shortfall interest charge and will not be undertaking compliance activities in respect of these changes.
Please contact your Morrows advisor for further guidance.