The Government announced an extension to the 2015-16 Budget measure providing an instant asset write-off provision for small business in May earlier this year.
Small businesses can immediately deduct the business portion of most assets if they cost less than $20,000. However, in order to be eligible, assets must have been purchased between 7:30PM on 12 May 2015 and 30 June 2018. This deduction is used for each asset that costs less than $20,000, whether new or second-hand. You claim the deduction through your tax return, in the year the asset was first used or installed ready for use.
The current ‘lock out’ laws for simplified depreciation rules will continue to be suspended until 30 June 2018.
To discuss how this may affect your tax, please call Steve on 3351 6111.