|May 11, 2017||0|
Purchase a new or second hand asset such as a motor vehicle, computer equipment, an Air conditioning system, a solar system or business machinery for $20,000 or less and claim an immediate tax deduction.
There are no limits on the amount of assets you purchase as long as each asset in under the $20,000 threshold.
If your business is registered for GST then it is GST exclusive prices that count. You can then also claim the GST back from the Tax man as well on each purchase.
This is the easiest and fastest way to reduce your taxable income when so close to the financial year
The instant asset write-off program is one of two major budget policies benefiting small business.
While the asset-write off was introduced as a measure pitched at “tradies”, Small Business Minister Michael McCormack said “hundreds” of small businesses had told him the write-off rules allowed greater investment in capital equipment. Only a few measures are not eligible for instant write off, such as office plants and in-house software.
And the other reason why it works so well is that this plant & equipment can be easily financed – often on a LowDoc basis for commercial use
Pamela bought a second hand skid steer loader for $17,000 on 08 May 2017 which is used solely in her landscaping business. As the depreciating asset cost less than $20,000, Pamela will be able to claim an immediate deduction for this asset.
Owen bought a new Solar System & Aird conditioner for $35,000 on 28 April 2017 which are used solely in his manufacturing business. As he obtained 2 separate invoices each under $20,000, Owen can claim an immediate deduction for both these assets.
Mary intends to buy a new delivery van for her courier business in June 2017. Her business is registered for GST and the van cost $19,500 excluding GST. Mary will be able to claim an immediate deduction for this asset this year as well as the GST in this BAS period.
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