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Item 10 - Small business entity simplified depreciation

To manage your small business assets, use the

When you close the worksheets, we'll pass all values to label A and B as required.

Only complete this item if the company is a small business entity using the simplified depreciation rules. Refer to the Small Business Entity concessions on the ATO website.

To complete this item, use the amounts the company calculated for small business entity depreciation deductions at label X Depreciation expenses item 6. Refer to Label X-Depreciation expenses.

The instant asset write-off has been increased and extended to allow small businesses to claim an immediate deduction for assets they first start to use, or have installed ready for use for a business purpose:

  • from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020, if they cost less than $30,000 each.
  • from 29 January 2019 and before 7.30pm (AEDT) 2 April 2019, if they cost less than $25,000 each.
  • before 29 January 2019, if they cost less than $20,000 each.

The balance of the general small business pool is also immediately deducted in the 2019 income year if the balance at the end of the income year (before applying the depreciation deductions) is less than $30,000 .

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 the they have opted out) until the end of 30 June 2020.

If the company is an eligible small business entity and has chosen to use the simplified depreciation rules, write at X Depreciation expenses the total depreciation deductions being claimed under the simplified depreciation rules and the uniform capital allowances (UCA) rules.

If you are a small business entity and have total depreciation deductions at label X Depreciation expenses, you must also complete item 10 Small business entity simplified depreciation.

Some depreciating assets are excluded from these simplified depreciation rules but a deduction may be available under the UCA or the R&D depreciating asset regime.

An eligible company choosing to use these simplified depreciation rules must use both the immediate write-off and the pooling method where applicable. It cannot choose to use one and not the other.

For more information about the small business entity depreciation rules on the ATO's website.

Label A - Deduction for certain assets

Show at label A the total amount the company claimed at item 6 relating to assets costing less than $20,000, $25,000 and $30,000 for which you claimed an immediate deduction.

Depreciation worksheet (d)

Small business entity depreciating assets worksheet (sda)

Label B - Deduction for general small business pool

 This is the total amount the company claimed at item 6 relating to the general small business pool.

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