By the end of the 2016 financial year, there was a record of 2,066,806 active small businesses in Australia nationwide.
Now what if I told you the majority of these businesses were able to claim a full deduction on their asset purchases.
One of the key policies implemented as a result of the 2015 budget was the $20, 000 instant write-off scheme. This allowed for assets which were purchased at $20,000 or less to be instantly written off against the income of the business as opposed to the proportional depreciation amounts from year to year.
This allows businesses to plan their expenditure strategically, investing in plant and equipment when it best suits them.
In the following year, the 2016 budget extended this scheme to businesses with turnover up to $10 million from $2 million.
This means that the number of businesses which could claim the $20,000 asset write off had increased tremendously.
So, the question you may be asking yourself is, what can I claim under this particular scheme?
Some of the common assets purchases we’ve noticed included:
- Computer and IT related hardware
- Office furniture
- Tradesman tools
- Even vehicles under the magical $20, 000 mark
The most important thing to note is that the deadline of this scheme has not been extended and is due to the end on June 30, 2017.