Former STS taxpayers who have continued to use the STS cash method since before 1 July 2005 and who qualify as an SBE are generally only entitled to deductions if they have paid the amount by 30 June.
All SBE taxpayers can choose to write-off depreciable assets costing less than $1,000 in the year of purchase. Also, assets costing $1,000 or more are allocated to an SBE general pool and depreciated at 15% (which is half the full rate of 30%) in their first year. Therefore, where appropriate, SBE business taxpayers should consider purchasing/installing these items by 30 June 2015.
It should be noted that SBE taxpayers choosing to use the SBE depreciation rules are effectively ‘locked in’ to using those rules for all of their depreciable assets.
STOP PRESS: It is important to note that proposed changes to the SBE capital allowance regime will impact the 2015 income year. Under the proposals, the small instant asset write-off threshold will be temporarily increased to ‘less than $20,000’, for assets acquired and installed ready for use between 7.30 pm (AEST) 12 May 2015 and 30 June 2017. The increased threshold will also be available to SBEs who previously ‘opted out’ of the SBE capital allowance provisions. On 28 May 2015, the Tax Laws Amendment (Small Business Measures No.2) Bill 2015, was introduced to give effect to this measure.
