Now that the legislation is before parliament, here is a quick guide for the $20,000 write off for small business assets from this year’s Budget.
To be eligible:
- The annual turnover of your business must be less than $2 million. (There are provisions to aggregate multiple businesses with the same owners).
- The item acquired must cost less than $20,000 (GST excluded).
- The item has to be acquired after 7.30pm on 12th May, 2015.
- The business must own the item so ‘leasing’ the item will not give you an immediate deduction. (Please contact me before signing any finance agreements).
- The deduction is available at the time the item is installed ready for use. Therefore, any items claimed in the 2015 financial year will need to be installed and ready for use prior to 30th June 2015.
- It applies to both new and second hand items.
In addition, there is no limit on the number of items costing up to $20,000 that each business can claim.
Please contact me before making any large purchases to ensure it fits in with your tax position.