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.
