As the end of financial year is quickly approaching, here are some hints on how small businesses can make the most out of the Small Business Tax Break.
Current Law for Small Businesses – Expanding Accelerated Depreciation
Until the end of June 2017, small businesses can claim an immediate deduction for assets they start to use, or have installed ready for use, provided each depreciable asset costs less than $20,000.
A business that meets the requirements of a small business entity and has an annual turnover of less than $2 million, may be eligible to claim an immediate deduction.
All depreciating assets (including new and second hand) are eligible, except for a small number of exclusions which receive different depreciation treatment.
If you are looking to update your business, whether that be a new TV to screen presentations, a laptop to keep up to date while you’re on the go, or even a new coffee machine so you can make your customers a great cup of coffee, we have all your business essentials covered.
Excluded assets include:
- Horticultural plants
- Capital works
- Assets allocated to a low-value pool or software development pool
- Primary production assets which the entity has chosen to use the normal depreciation rules rather than the simplified depreciation rules
- Assets leased out to another party on a depreciating asset lease.
Now is a great time to upgrade your business’ appliances, technology and whitegoods before the Small Business Tax Break ends.
For more information, visit the below link and always consult your accountant first.