<$20,000 Write-Off for small business
Here is a quick guide for the <$20,000 write off for small business assets from last year’s Budget.
To be eligible:
- The annual turnover of your business must be less than $2 million. (There are provisions to aggregate multiple businesses with the same owners).
- The item acquired must cost less than $20,000 (GST excluded).
- The item has to be acquired after 7.30pm on 12th May, 2015.
- The business must own the item so ‘leasing’ the item will not give you an immediate deduction. (Please contact me before signing any finance agreements).
- The deduction is available at the time the item is installed ready for use. Therefore, any items claimed in the 2016 financial year will need to be installed and ready for use prior to 30thJune 2016.
- It applies to both new and second hand items.
In addition, there is no limit on the number of items costing up to $20,000 that each business can claim.
Please contact your accountant before making any large purchases to ensure it fits in with your tax position.
Courtesy of Scott Davis, Healthcare CPA, Williams Davis Accountants North Sydney.
The above is general information only and is NOT accountancy or Tax advice. Accordingly, the information on this site is provided with the understanding that the authors and publishers are not herein engaged in rendering legal, accounting, tax, or other professional advice and services. As such, it should not be used as a substitute for consultation with professional accounting, tax, legal or other competent advisers. Before making any decision or taking any action, you should consult your accountant or advisor.