Did you know as a small business you can immediately deduct assets costing less than $22,000 inc gst.
This deduction has been extended to 30/06/2019
Your deduction can be claimed in the income year in which the asset is first used or installed ready for use.
So What's changed?
The instant asset write-off threshold has increased to $22,000 inc gst (up from $1,100 inc gst). This allows you to immediately deduct the business use portion of a depreciating asset that costs less than $20,000.
What does it mean to my business?
Think about it? you are up for a $20,000 tax bill, you can pay that to the tax ATO or, you can purchase assets to help your business? You can add tile and grout cleaning equipment, an RX20, that new tool you have been saving for, add some dehumidifiers to you restoration equipment pool, you can upgrade your portable, you can even purchase a truckmount ..... OR PAY TAX
Can I deduct more than $22,000?
The answer is yes, but it depends on what your business can afford, each invoice has to be under $22,000 inc GST. Invoices over $22,000 are depreciated in the normal way. As always we recommend your talk to your accountant about your options.
Can You Finance the Equipment?
The answer is yes, but it depends on the type of finance, as always we recommend your talk to your accountant about your options.
