Currently, small businesses (with a turnover of less than $10 million) that buy an asset that costs less than $20,000 can claim an immediate tax deduction for the purchase.
The recent Federal budget announced that the $20,000 threshold will be extended to 30 June 2019 (at which time the deduction threshold will reduce to the former limit of $1,000).
If you are a small business and you purchase an asset for more than $20,000 you can still depreciate the asset in the small business depreciation pool (which is depreciated at 15% in the first year and 30% in the following years).
If you run a small business and are thinking about purchasing (or financing) a new asset (eg. a vehicle or a large equipment), we recommend that you do this prior to 30 June to get a tax deduction for it in the current financial year.
If you would like to know more about your business’ eligibility to the $20,000 instant asset write-off please call us on (07) 56656469.
DISCLAIMER: The information in this article is general in nature and is not a substitute for professional advice. Accordingly, neither TJN Accountants nor any member or employee of TJN Accountants accepts any responsibility for any loss, however caused, as a result of reliance on this general information. We recommend that our formal advice be sought before acting in any of the areas. The article is issued as a helpful guide to clients and for their private information. Therefore it should be regarded as confidential and not be made available to any person without our consent,