The Government has recently 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 than $5,000 in the year they purchased them. This is instead of having to spread the cost over the life of the asset.
The low-value threshold will be raised further to allow the immediate expensing of assets purchased on or after 17 March 2020 that cost less than $5,000.
The Government is only raising the threshold for a short time until 16 March 2021. They’re doing this so you and other business people keep investing in their businesses throughout the COVID-19 outbreak.
For assets purchased on or after 17 March 2021, this threshold will be permanently increased from $500 to $1,000.