The temporary increase to $5,000 for the low-value asset threshold for depreciation ends March 16th
This means if you buy something now, you could write off the whole amount against your taxable income this year.
Depreciation spreads the cost of assets that you buy for your business, by claiming a deduction from the IRD in your tax return.
In March 2020, the NZ Government introduced legislation to temporarily raise the threshold for depreciation on low-value assets from $500 to $5,000. The aim of this change was to stimulate the economy during the Covid pandemic by encouraging people to invest in their businesses.
The change to the $5,000 threshold ends 16 March 2021
What does this mean for you?
The raised threshold change is only available until March 16th 2021. For assets purchased on or after 17 March 2021, the new threshold will be permanently set at $1,000.
In order to claim you will need a proof of purchase to support your records. Note that there are some terms and conditions in the rule which apply to the threshold:
Contact us for further information.