Assets < $100
<h1 >Capital allowances: low-cost assets – threshold rule for large business</h1>
<p><a id="What_is_the100_threshold_rule" name="What_is_the100_threshold_rule" > </a></p>
<h2 >What is the $100 threshold rule?</h2>
<p >The threshold rule allows a business not using the simplified depreciation rules to claim an immediate deduction for most business expenditure of $100 or less to buy tangible assets.
The rule is meant to help businesses save time because they do not need to decide whether each purchase is of a revenue nature (and so immediately deductible) or of a capital nature (which is usually written-off over time).
Purchases of a revenue nature normally mean that a business expects the item to be consumed, damaged or lost within a short period of time while purchases of a capital nature generally result in the item or asset being used over a longer period.</p>