Asset Write-Off for Small Businesses
By James Peters /Asset Finance
$20,000 Asset Write-Off for Small Businesses and why June is usually the best time to update assets due to EFY sales One of the fundamental small business policies in the 2015 federal budget, the $20,000 instant asset write-off scheme allows businesses to immediately deduct the full value of every asset purchased to the value of $20,000, as opposed to previously having to the deductions over a number of years. The scheme is currently available to businesses turning over up to $2 million annually, however, this threshold will increase to $10 million from July 1 this year. This is also a “limited time offer,” with the instant deduction applying to assets purchased until June 30, 2017. These measures essentially mean that a taxpayer can bring forward deductions where they wouldn’t otherwise have been able to do so.
What qualifies? What can I buy?The following are examples of assets that qualify for the tax deduction:
- IT hardware such as desktop computers, printers, scanners and photocopiers, specialised office equipment.
- Office or shop furniture and fittings – office furniture, café tables and chairs, etc.
- Display screens, kitchen equipment, signage and air conditioners
- Work vehicles, such as a $19,999 Ute. Just wait for the EOFY Advertisements!
- Tradesmen’s tools and machinery
- Plant and equipment – CNC machinery, forklifts, excavators, skid steer, agricultural equipment, boom lifts, cranes, tractors etc.
- Sheds or storage containers for storing equipment.