I have bought a number of small items that add up to $1,000. Can I get the 50% allowance?

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.


Got a question for one of our Experts? Choose one that suits your area of inquiry and send it in to asktheexperts@smartcompany.com.au

To read more Tax Advice, click here.


Notify of
Inline Feedbacks
View all comments
SmartCompany Plus

Sign in

To connect a sign in method the email must match the one on your SmartCompany Plus account.
Or use your email
Forgot your password?

Want some assistance?

Contact us on: support@smartcompany.com.au or call the hotline: +61 (03) 8623 9900.