27th April, 2020
One of the best tax breaks for small to medium sized business is the instant asset write-off, which is a great way for businesses to acquire capital assets and obtain an immediate tax deduction.
As part of the Federal Government’s recent Coronavirus Stimulus Package, the Instant Asset Write-Off threshold has increased from $30,000 to $150,000 (net of GST) per asset acquired and now applies to businesses with an aggregated annual turnover of less than $500 million.
This measure will apply to all purchases made from 12 March 2020 to 30 June 2020 where the assets are used, or installed ready for use, in the business by 30 June 2020.
Some of the items that you could look at purchasing before 30 June 2020 include:
To ensure compliance with the tax rules, here are nine key tips:
This article, while written by accredited tax agent and chartered accountant Joe Kaleb of the small business portal Australianbiz, does not constitute financial advice. For advice on your specific situation, MYOB recommends engaging a qualified professional directly. You can begin searching for an advisor here.