SMALL BUSINESS TAX BREAK 2017
The Small Business can now rely on a new tax concession allowed by the Australian Government. 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 until 30 June 2017. It’s a huge saving!
You can use the new threshold amounts in claiming deductions in your 2016 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 2017
- on a per asset basis, so several assets each costing less than $20,000 would qualify
- to new and second hand assets.
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. The low pool value threshold will also increase to $20,000. This means that an immediate deduction is available if the pool balance is less than $20,000 at the end of an income year.
We recommend seeing advise from your tax adviser for further information to determine eligibility.
Information source, Australian Taxation Office.