Small business concessions: simpler depreciation rules
For assets you start to hold, and first use (or have installed ready for use) for a taxable purpose from 7.30pm (AEDT) on 6 October 2020 to 30 June 2023 the instant asset write-off threshold does not apply to businesses using the simplified depreciation rules. You must immediately deduct the business portion of the asset's cost under temporary full expensing – you do not add these assets to your small business pool.
You must also deduct the balance of the general small business pool at the end of the 2022 income year.
You cannot opt out of temporary full expensing for assets that the simplified depreciation rules apply to unless you opt out of the simplified depreciation rules.
To complete this item, use the amounts the company calculated for small business entity depreciation deductions at X Depreciation expenses item 6. For more information, see Small business entities.
A – Deduction for certain assets (costing less than the relevant instant asset write-off threshold)
Small businesses using the simplified depreciation rules cannot apply the instant asset write-off threshold for assets you start to hold, and first use (or have installed ready for use) for a taxable purpose from 7:30 pm (AEDT) on 6 October 2020 to 30 June 2023. You must immediately deduct the business portion of the asset's cost under temporary full expensing.
A small business entity using the simplified depreciation rules must insert 0 at A because, in 2021–22, you do not hold an asset meeting the criteria to claim instant asset write-off.
You must also complete S and T item 9 to show the amount, and number of depreciating assets, you are claiming a deduction for under temporary full expensing.
B – Deduction for general small business pool
Write at B the total amount the company claimed at item 6 relating to the general small business pool.
If you have written off the pool balance in a previous year, insert 0 at this label.
Continue to: 11. Consolidation deductions