Big Tax Tip for Your Small BusinessPosted: Sunday July 30, 2017
The 2017 Budget included a major small business tax announcement that we believe could benefit your business immensely!
The announcement was that the Small Business $20,000 instant asset write off will be extended for another year. This scheme enables small businesses to immediately deduct the cost of capital items where the cost of each item is less than $20,000. The scheme’s deadline has been extended until 30 June 2018 after which the threshold will revert back to $1000.
This one year extension will give all small businesses the chance to utilise a valuable tax break which has not been used to its maximum extent thus far. Also, the recent definition of what classifies as a small business has changed, meaning that now businesses with a turnover of less than $10 million qualify. Each individual item falls under this tax bracket, for example three systems costing $10,000 each could potentially be deducted.
Among the items which could potentially qualify are:
- Technology such as computers, laptops, phones, tablets
- Networks, servers and printers
- Office furniture and fittings
- Tools of your trade
If your business purchases assets valued at $20,000 or more (which are therefore unable to be immediately deducted), these assets can continue to be placed into the general small business pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter. The pool can also be immediately deducted if the balance is less than $20,000 over this period (including existing pools).
Check out the links below for more details on how this tax extension could benefit your small business. If you are thinking about updating your networks or systems this is a great chance for you to do so. If you would like any information on acquiring our systems and technology before the tax cut-off ends, give us a call on 44742477.