I have purchased since January this year, a number of small tools (like an electric drill, spanner set, etc) to the value of more than $1,000.00 in total. Can I claim the 50% deduction off these?
One of the eligibility requirements for the investment allowance is that the item claimed is not less than $1,000 for an entity whose turnover is less than $2 million, and not less than $10,000 for a larger business. The legislation does provide the ability to group assets to establish the cost base where those assets are part of a set (such as a table and chairs) or are substantially identical assets used for the same purpose (such as four computer workstations attached to the same server).
Where your tools formed a set (such as a set of spanners) you should be able to group these. But if the tools were unrelated, other than the fact that you use them all in your business, then this may not meet the eligibility test. This is an area where you should get specific advice from your accountant, based on the actual items being purchased and their cost.
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James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
