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Low-value asset threshold

NZ tax rules let you immediately expense low-value assets (under $1,000) rather than depreciating them over years.

In Afirmo, when you code an asset purchase:

  • Under $1,000 - code under Equipment (under $1,000) as an operating expense. Claims the full amount in the year of purchase.
  • $1,000 or more - moves to the asset register and depreciates per IRD rates.

The $1,000 threshold is set at the IRD-published rate. If thresholds change (they have moved historically), Afirmo updates the categories accordingly.