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.
From 1 July 2018, the $20k threshold will reduce to $1000.
For more information on this incentive, speak to your accountant or visit the ATO website