The $20,000 instant asset write off allows a business to deduct in full certain asset purchases in the year of acquisition, provided the business meets certain criteria. This is more tax effective instead of apportioning the deduction over a number of years.
The threshold date has been extended to 30 June 2018. It was originally put in place by the government on 12 May 2015.
Your business is able to access this write off provided it:
- Has a turnover of less than $10 million (increased from $2 million on 1 July 2016), and
- The asset was first used or installed ready for use in the income year you are claiming it in.
However time is running out. If you are considering purchasing new plant and equipment, now is the time to act before this generous small business tax concession comes to an end.
Please note that the write will be limited to $1,000 as of 1 July 2018.
If you would like to discuss further please contact us:
McNamara and Co - Chartered Accountants, located minutes from the Melbourne CBD
www.mcnamaraandcompany.com.au/contact-us
Phone +61 3 9428 1062
Email admin@mcnamaraandco.com
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