According to the latest budget, the government has extended the $20K instant write off for small business owners from 30 June 2017 to June 30th 2018, but it’s still advantageous to have the write off in this financial year.
Many SME’s have already utilised the benefits of the $20K immediate deduction legislation since it was introduced in May 2015. This threshold was meant to expire on the 30th June 2017, but the extension means we have at least another 12 months until the limit drops back to the former $1K immediate deduction.
As such many business owners like you are looking to maximise their use of this rule before time runs out. It’s important to remember that the Australian Tax Office (ATO) will only recognise a purchase as being eligible for this deduction when the asset is being used for an income producing purpose. They will be monitoring how the write off is being claimed to make sure there is no manipulation of the system.
The assets don’t have to be new, second hand assets are also eligible.
Keep this information in mind as we head towards 1 July 2017 to maximise your claims at tax time.
If you have any questions or would like to consult one of our finance specialists regarding this legislation please contact us today.
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