Item 48 Small business entity simplified depreciation (partnership return)

See Item 48 Small business entity simplified depreciation on the ATO website.

Only complete this item if the partnership is a small business entity using the simplified depreciation rules.

You must review your small business eligibility each year.

If you haven't completed the small business eligibility question at item 5 label V Is the taxpayer a small business entity?, open the depreciation worksheet (d) and click SBE eligibility... from the right-hand pane. See Small business entity eligibility tests worksheet (sbe).

Under these rules, if the partnership purchased assets from 7.30 pm (AEST) on 12 May 2015 and first used or installed them ready for use, then from:

7.30pm (AEST) on 12 May 2015 until 28 January 2019 The trust can immediately deduct the business portion of most depreciating assets costing less than $20,000 each (the instant asset write-off threshold)
29 January 2019 until before 7.30pm (AEDT) 2 April 2019 The trust can immediately deduct the business portion of most depreciating assets costing less than $25,000 each (the instant asset write-off threshold).
7.30pm (AEDT) on 2 April 2019 until 30 June 2020 The trust can immediately deduct the business portion of most depreciating assets costing less than $30,000 each (the instant asset write-off threshold).

The balance of the general small business pool is also immediately deductible if the balance is less than $30,000 at the end of an income year that ends on or after 12 May 2015 and on or before 30 June 2020 (including existing general small business pool).

The 'lock out' laws have also been suspended for the simplified depreciation rules (these prevent small businesses from re-entering the simplified depreciation regime for five years if they have opted out) until the end of 30 June 2020.

Label A—Deduction for certain assets

Taking the above changes into account, show at label A the total amount claimed relating to low cost assets.

The amounts at labels A and B flow through from the Small business entity depreciating assets worksheet (sda).

The sda's values flowed from the depreciation worksheet (d). See Small business entity depreciating assets worksheet (sda).

Pressing Enter at the closed field Low cost assets or General pool assets from the sda worksheet opens the Depreciation worksheet (d).

Label B—Deduction for general small business pool

Show at label B the total amount claimed relating to the general small business pool.

CCH References

7-050 Small business entities

7-250 Simplified depreciation for small business

17-015 Depreciating assets