Instant Asset Write-Off Extended until 30 June 2018!!!
More good news for Australian business. The Australian Taxation Office has made the decision to extend the instant asset write-off, allowing small businesses the immediate deductibility for eligible assets costing less than $20,000 purchased by 30 June 2018. The immediate write off is applicable to small business entities with an aggregated turnover of less than $10 million.
What does the scheme mean?
If your business turns over less than $10 million per year and you make a purchase of an asset for less than $20,000 (excluding GST), whether new or second-hand, before 30 June 2018 the asset can be claimed as an expense, rather than slowly depreciating it over a set amount of years. There is also no limit to how many assets you can claim the deduction for.
What kind machinery could you claim?
Assets used for your business which may include tractors, generators, wheel loaders, portable buildings, farming implements, excavators, forklifts. At Agrison, most of our products are actually used for business purposes; whether your lifting pallets, digging earth, building trenches etc.
How does the instant asset write-off work
For Example, if a business/company has to purchase a machine at a cost of $21,000 (including GST), the tax benefit would look like this:
- $1,909 GST refundable
- Tax saving at 27.5% (company tax rate) due to the immediate deduction – $5,250
- Total cost of a $21,000 asset after tax saving = $13,841
How can I get more information?
For information regarding the extension to the Instant Asset Write-off please visit the Australian Taxation Office Website and consult your Accountant/Financial Advisor.