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,
Jeanette has over 20 years experience as an accountant in public practice. She is a Chartered Accountant, registered tax agent and accredited SMSF Association advisor. When she is not helping business owners grow their empires, you will likely find her out running on the trails or lifting weights in her local CrossFit gym. Book in to see Jeanette today.