In general, below are the simplified depreciation rules that apply from the 2012-13 financial year:

• immediate write off most depreciating assets costing less than $6,500 each.
• pool most other depreciating assets (irrespective of their effective life),in the general small business pool and depreciate at the rate of 30%
• depreciate most newly acquired assets at 15% in the first year, regardless of when they were acquired during that year
• claim an accelerated initial deduction for motor vehicles.
  • From the 2012-13 income year, a small business using the simplified depreciation rules can claim up to $5,000 as an immediate deduction for a motor vehicle costing $6,500 or more that it starts to use, or have installed ready for use, for a taxable purpose.
  • The cost of the motor vehicle is added to the general pool but unlike other assets, the deduction is $5,000 plus 15% of the remaining amount.

For more information, refer to Changes to small business concessions for 2012-13.
Want your accountant to worry about concessions, Contact us on (03) 9569 1571 for all your business advisory services.Changes to Fringe Benefit Tax on Motor Vehicles