Small business is a rewarding, but often unforgiving world, so owners and entrepreneurs need to take advantage of any benefit that is legally available. The $20,000 write-off threshold is one such government policy open to all Australian small businesses – which includes any organisation with an annual turnover of less than $10 million. But at the risk of sounding like the end of an infomercial; hurry, the offer ends soon.
You may have already heard about the asset write-off, which was brought in to give small businesses a big boost. It was first introduced back on May 12, 2015, and was intended to expire on June 20, 2017, before the government generously extended the program until the end of the current tax year.
Under the policy, small businesses are allowed to immediately deduct the purchase of any business-related asset that costs less than $20,000, provided it was first used, or installed and ready for use, by the start of the 2017-18 financial year. But all good things must come to an end, and this business-friendly scheme will virtually cease on July 1, 2018, with the threshold slashed to just $1,000.
Astute Ability Finance Group recommends consulting your accountant before making any business purchase whether it’s a vehicle, drill or laptop, to ensure the item or items you intend to buy are eligible for the $20,000 write-off. However, we also strongly urge you to consider accepting this ‘gift’ from the government while it still exists in its current generous form.
In broad terms, the write-off applies to vehicles, equipment, technology, machinery and any other business-related purchases under $20,000. It is essential to remember items over $20,000 are not eligible under the program and are therefore subject to standard tax regulations. Our team of loan experts at Astute are ready to help advise you on your best finance options if you do decide the time is right to make a purchase.
If you have been putting off buying a new piece of machinery you desperately need or have been waiting for the right time to upgrade your ageing office computers, now could be the perfect time to act. Why not take advantage of the government’s generosity while it lasts?