During the recent budget announcements, the Federal Budget agreed to extend the $20,000 instant write off scheme for small business.
So, if you’re a running an ABN-registered business with a turnover of less than $2 million, you can take advantage of this accelerated depreciation measure right now and reduce your taxable income this financial year. It’s a win- win situation.
Your business can immediately deduct the full cost of any physical items you purchase between now and 30 June 2019, such as computers, shop fixtures, cars or tools. Only catch – the item must cost less than $20,000.
The minimum threshold is $1,000 which is a great incentive to buy now and take advantage of the scheme. However, it’s important to make sure you are buying the correct item as not every item qualifies.
Examples of items that qualify:
- IT equipment such as computers, printers, scanners etc but software does Not qualify
- Furniture and fittings for office or shop
- Display screens, air conditioners, kitchen equipment, signage
- Work vehicle under $20,000 (such as a work ute)
- Tools and equipment (for trades people)
- Plant and equipment
- Storage containers and/or sheds for storing equipment
A small number of items do not qualify (such as horticultural plants) so contact us first if you’re not sure.
Amazingly despite the fact this scheme has been running since 2015 only 40% of businesses have taken full advantage of this tax break. One main reason for businesses not utilising this scheme is a lack of funds to purchase the items upfront.
Capital Funding is well placed to assist you with obtaining the funds you need. We can offer competitive rates and terms on any finance you might need to purchase these goods.
So, with interest rates at record lows, and a generous instant asset write offs at your disposal, now is the time to really give your small business that extra push it needs to be truly successful.
Contact us now. The end of financial year is only 6 weeks away!!