Did you know you could save tax by purchasing assets for your small business this year?
If you buy an asset and it costs less than $20,000, you can immediately deduct the business portion in your tax return.
The ATO states that you are eligible if:
This could be almost any claimable business asset such as a vehicle, a fridge, a coffee machine or even a portable storage shed.
For example, Andrew bought a small excavator for $18,000 which is used by his landscaping business. As the depreciating asset cost less than $20,000, Andrew is able to claim an immediate tax deduction for his asset.
Assets that cost $20,000 or more (which can’t be immediately deducted) continue to be deducted over time using a small business pool.
The ATO incentive is due to end on 30 June 2018.
The government has announced in the recent federal budget that they intend to extend the offer another 12months. Contact your accountant or the ATO for more information.
For more information on this incentive, speak to your accountant or visit the ATO website
This article has moe information on the Budget extending the incentive. https://www.smartcompany.com.au/business-advice/politics/budget-2018-budget-2018-20000-instant-asset-write-off-scheme-extended-for-one-more-year/
Financial disclaimer-The information provided in this post is general information only. Before acting on this information you should consider the appropriateness of the information, having regard to your own objectives, financial situation and needs. Please consult a professional in that taxation field before proceeding with your purchases that you may use for deduction purposes.