The capital allowances threshold rule allows you to claim an immediate deduction for most business expenditure of $100 or less to buy tangible assets.  

This tax administrative rule is intended to help you save time because you don’t need to decide whether each purchase is of a revenue nature (and so immediately deductible) or of a capital nature (usually written-off over time).  

Purchases of a revenue nature normally mean that you expect the item to be consumed, damaged or lost within a short period of time. Purchases of a capital nature generally result in the item or asset being used over a longer period.  

Separate, more generous, rules apply if you are using the simplified depreciation rules for small businesses.  

Click here for further information from the ATO. 

To find out more, please contact your accountant at Rosenfeld Kant on (02) 9375 1200 or email gary@roskant.com.au, raul@roskant.com.au, elias@roskant.com.au