The instant asset tax write-off for small businesses was increased to $25,000 per asset during 2019. In the 2019 Budget, the Federal Government announced further plans to increase the instant-asset tax write off for small businesses to $30,000 per asset and, if they are re-elected on May 18, extend the plan until June 30, 2020.
Small businesses can currently purchase an eligible asset up to $25,000 (ex GST) and write it off as a tax deduction in the same financial year of purchase. What’s even better, is that the tax write-off could apply to more than one new asset.
In the past, only assets valued up to $1,000 (ex GST) could be written off in this way. Tax deductions for more expensive business assets are usually based on depreciation and small business owners claim this expense in their business tax return over time.
To find out more about the different methods of depreciating business assets, or claiming the instant-asset tax write-off, visit the ATO website.
A small business can currently claim an immediate tax deduction for the business portion of each asset purchased in the 2018/19 financial year provided:
As promised by Scott Morrison in his Budget speech, if the Coalition Government is re-elected on May 18, the instant-asset tax write-off for small business will continue until at least June 30, 2020.
In the meantime, if you own a small business, there’s still plenty of time to take advantage of the scheme in the 2018/19 tax year.
The write-off currently applies to vehicles, equipment, technology, machinery and any other business-related purchases under the $25,000 threshold.
We have access to highly competitive finance options if you need funds to make any business purchases before the cut-off date of June 30, 2019.
Please call us on 8004 2222 or email firstname.lastname@example.org
This information should not be considered tax or financial advice and is not intended to replace consultation with a qualified accountant, broker and/or financial advisor.