The federal government has introduced amendments to reduce the instant asset write off threshold to $1,000 (which was the threshold prior to 1 July 2012).  Currently for depreciating assets less than $6,500 can be instantly written-off.

The current $6,500 write-off will remain in place until 1 January 2014.  In order to access the write-off, businesses must have the asset delivered and, where applicable, installed ready for use before 1 January 2014.

Removal of accelerated depreciation for motor vehicles

Currently small business entities which purchase motor vehicles costing $6,500 or more, are eligible to claim an immediate deduction of $5,000, with the balance allocated to an accelerated depreciation pool.

From 1 January 2014, the depreciation of motor vehicles will revert to pre 1 July 2012 rules.

In order to access accelerated depreciation, businesses must have delivery of the motor vehicle and, where applicable, installation completed (i.e. all industry specific modifications completed) before 1 January 2014.