Thinking of working from home?
Small business owners or employees now have an even greater incentive to work from home; it could help you save tax!
The Australian Government has a Small Business Incentive that allows small businesses to claim work-related asset expenses off their tax.
Mark Chapman, tax communications director with tax accountants H&R Block, welcomes the move.
“now is a great time for small businesses to go out and make those capital purchases that might have been on the wish list, but where the time just never seemed quite right.” ¹
You’ll have to act fast, however, as the incentive ends June 30, 2017.
Who is eligible for the tax deduction?
Any small business or sole trader with an ABN (Australian Business Number) is eligible for the tax deduction.
In the 2016-17 Budget, the Government announced an increase to the small business entity turnover threshold from $2 million to $10 million. This means after 1 July 2016, business entities with a turnover of less than $10 million are be able to access this concession which was originally only available to business entities with a turnover of less than $2 million.
What can I claim?
The ATO have stated that “Small businesses can immediately deduct assets costing less than $20,000″.
This means any asset that relates to your business and is used for business purposes. Assets such as a vehicle, a fridge, a coffee machine, or even a portable storage shed can be claimed.
Assets that cost $20,000 or more (which can’t be immediately deducted) will continue to be deducted over time using a small business pool.
When is the deadline?
The incentive applies only to assets that that were first acquired at or after 7:30 pm, 12 May 2015, and first used or installed ready for use on or before 30 June 2017.
This means if you are going to purchase a Backyard Work Shed as a new portable business asset, and take advantage of the tax deduction, it needs to be on your property before 30 June 2017. Contact us today to secure your delivery date.
Having a portable shed provides your business with a transportable, low-cost and innovative space to help you with your business storage needs.
When speaking to your accountant about taking advantage of this incentive, remember that all Melwood products are classified as portable assets and should not be considered capital improvement or building works. They are just like any other portable site sheds on most major building sites however ours look so much nicer!
For more information visit: www.ato.gov.au/newsroom/smallbusiness/lodging-and-paying/get-your-$20,000-instant-asset-write-off
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.