The Small Business Minister’s office has confirmed that the generous instant asset write-off introduced by the former Labor government of $6,500 has ended effective the first of this month.
Instead the threshold has reverted to the previous level of $1,000.
Further the immediate deduction for the first $5,000 of the cost of a motor vehicle has also been abolished.
Both measures when introduced were linked to the mining tax and accordingly their removal is contained in the bill introduced to Parliament in late 2013 to repeal that tax.
The reduction of the threshold and the abolition of the motor vehicle deduction were part of the Coalition’s election commitments, so the change is not a surprise.
The bill actually remains in the Senate at this time, however the Government maintains the changes are effective on 1 January regardless of when the bill is finally passed!
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