BTE ACCOUNTING SERVICES·WEDNESDAY, 31 MAY 2017
Time is running out, don’t miss out on the $20,000 instant asset write-off and this is a big plus for small businesses.
- The 2015 budget news of a $20,000 asset write-off for small business, and it continued for next financial year 2016/17.
- If your business has a turnover of under $2 million, you have the opportunity to claima tax deduction on eligible business capital assets costing less than $20,000(excluding GST if you are registered for GST, or including GST if you are not registered).
- Were you aware this may be changing from 1 July 2017? The threshold may decrease from $20,000 back down to $1,000. That means you may only have a few more days to take advantage of this deduction for this financial year 2016/17.
- To claim the immediate deduction in 2016/17 year, the asset must be first used or installed ready for use in your business on or before 30 June 2017.
- If it’s delivered and installed on or after 1 July 2017, you will miss the cut-off time and you may be waiting for another twelve months to claim this until next financial year (2017/18).
- Just like any business decision the motivating factor should not be the tax benefit alone. We need to ensure that we this asset is needed and whether corresponding funds are available. What will be the effect of this purchase on our future cash flow?
- Will we have profit to claim the tax deduction against?
- Remember, there are only 28 days left to purchase your equipment below $20,000 and make your claim against your profit for Small Business and it’s Turn Over below two million’
For more information or to get connected to an expert, Call us 1800 356 788