22 May $30k instant write off
$30k Instant Asset write off Scheme:
Is your business eligible for the $30 000 instant tax write off?
In January 2019 the Australian government proposed increasing the instant the instant tax write from $20 000 to $30 000. This allow small business to write off eligible assets purchased up the value of $30 000. These laws have now been passed.
These apply to both small and medium businesses with an aggregated annual turnover less than $50 million.
The scheme is aimed to help business grow by upgrading their business asset/tools whilst reducing their taxable income.
– What is it? Qualifying assets totalling up to $30,000 are eligible for an instant deduction.
– When does it end? It applies to assets purchased until 30 June.
– Who qualifies? Businesses with turnovers of under $50 million.
– How does it work? Claim an instant tax deduction rather than writing the asset down over time.
Potential uses of funds there are many ways small businesses can invest $30,000 to help their business grow.
– Technology to automate business systems like bookings, invoices or rostering. – IT hardware including desktop computers, printers, scanners, photocopiers.
– Office and shop fittings including new café tables, display and shelving, kitchen equipment, signage, air conditioners.
– New and second hand work vehicles including Utes and forklifts. – Trade tools including machinery, lathes, hoists, plant and other equipment, sheds and storage containers for equipment.
– Primary production capital expenditure including fencing and water facilities such as dams, tanks, bores, irrigation channels, pumps, water towers and windmills. Assets excluded include horticultural plants and in-house software allocated to a software development pool.