Asset threshold changes
Government passed legislation to temporarily increase the low-value asset threshold from $500 starting 17th March 2020 to 17th March 2021. The new $5,000.00 asset threshold is temporarily increased for low value asset depreciation.
This allows business owners to deduct the full cost of their business assets with a value of less than $5,000 in the year it was purchased. The Government has done this to allow businesses to invest in assets due to the COVID-19 outbreak.
From 17th March 2021 the low value asset threshold will be permanently increased from $500 to $1,000.
For farmers, this provides an opportunity for you to bring forward the purchase of assets to claim an immediate tax deduction.
Assets that may fall under the $5,000 threshold could include:
- Power tools
- Computers, cell phone
- Calf feeders
So, if you’re planning to purchase or upgrade that business asset, now is the time to do so! Want to know out more? Contact us, we are here to help.