Small Business Celebrate Win On Tax Break 2018!
On 9 May 2017, the Australian Government announced an extension to the 2015-16 Budget measure providing an instant asset write-off provision for small business. Small businesses can immediately deduct the business portion of most assets if they cost less than $20,000 and were purchased between 7:30PM on 12 May 2015 and 30 June 2018.
This deduction can be used for each asset that costs less than $20,000, whether new or second-hand. You can claim the deduction through your tax return, in the year the asset was first used or installed ready for use. If you are the owner of a small business thinking to buy or refresh food service equipment, this is the right time as you can immediately deduct assets costing less than $20,000 purchased after 7.30 pm on 12 May 2015 and extended now until 30 June 2018. It’s a huge saving!
You can use the new threshold amounts in claiming deductions in your 2017 income tax returns. The deduction is claimed in the income year in which the asset is first used or installed ready for use.
What’s changed? The instant asset write-off threshold has increased to $20,000 (up from $1,000). This allows you to immediately deduct the business use portion of a depreciating asset that costs less than $20,000.
The changes apply
- to assets acquired after 7.30 pm on 12 May 2015 until 30 June 2018
- on a per asset basis, so several assets each costing less than $20,000 would qualify
- to new and second hand assets.
We recommend seeing advice from your tax adviser for further information to determine eligibility.
Information source, Australian Taxation Office.