Out with the old, in with the new!

Small businesses* can claim an immediate tax deduction for assets costing less than $20,000 that are installed and ready for use by 30 June 2017. Under normal rules, the asset would be depreciated each year with the tax deductions spread out over a number of income tax years.

At this stage, the government has not extended the timeframe for the $20,000 threshold (previously only $1,000). As it stands, it will end on 30 June 2017. However, it remains to be seen whether the government plans to extend the threshold to later income tax years. Look out for an announcement in the May federal budget.

If you are a small business owner and are planning to acquire assets costing less than $20,000 in the near future, consider doing so prior to 30 June 2017.

Should you wish to have a discussion regarding the $20,000 asset write-off threshold or any other small business tax concessions, please do not hesitate to contact one of our qualified staff at HQB Chartered Accountants.

*A small business is defined as an entity carrying on a business with annual aggregated turnover, for the year ended 30 June 2017, of less than $10 million (legislation recently passed through parliament that increased this threshold from $2 million).

Posted 6.4.17

The information we are providing to you is purely factual in nature and does not take into account all of your personal objectives, situations or needs.  The information is objectively ascertainable and, therefore, does not constitute as financial product advice.  If you require personal advice you should consult an appropriately licenced person or authorised financial advisor, such as HQB Financial Solutions Pty Ltd.