As the end of the financial year fast approaches, it is important to be aware of changes happening at the end of this financial year. The ‘limited time offer’ $20,000 instant deduction for small business entities will be coming to an end on 30 June 2017.
This immediate tax deduction means that businesses with a turnover of less than $2,000,000 can purchase assets up to the value of $20,000 and claim an immediate deduction if bought and used, or installed ready for use before the 30 June 2017 deadline. The $20,000 immediate deduction will reduce to $1,000 after 30 June 2017.
Turnover greater than $2M? There may be a limited opportunity for businesses with turnover greater than $2M but less than $10M to take advantage of the same opportunity, but this is pending the result of proposed legislation. We’re monitoring it’s progress and will be sure to advise as it progresses.
- If you are considering replacing any plant & equipment, we encourage you to contact our office for a personalised discussion on taking advantage of this deduction which may save you considerable tax.
- If you’re a small business, assets costing more than $20,000 are deducted over time (depreciated) using the general business pool.
- Before rushing out to buy, please consider whether you actually need to. Be mindful of the amount of debt in your business and if the purchase will be adding to that.
This immediate deduction could be a real benefit to profitable small business that were planning on purchasing assets anyway, if used wisely. Talk to Advivo first.
If this was of interest or benefit to you please like it and forward it to a friend so they too may benefit.
Information provided in this blog is general in nature and not to be taken as tax advice. Contact our office for more information