SMEs to write-off every asset purchase under $20,000

Budget: SMEs to write-off every asset purchase under $20,000*

Deduct Every Asset up to 20k

Australian small businesses with turnover below $2 million will be able to immediately deduct every asset they purchase valued up to $20,000.

The new threshold will be in place until the end of June 2017 and is designed to support small businesses to invest in new assets to grow their businesses.

Tax Time E.O.F.Y

How it Works

The $20,000 threshold applies to each individual asset and small businesses will be able to apply the $20,000 rule to as many individual assets as they want.

Most small capital purchases will be eligible for the new threshold, with the exception of assets that have specific depreciation rules, including in-house software and horticultural plants.

Assets above the $20,000 threshold can be added together in the existing simplified depreciation pool and depreciated at the same rate: 15% in the first income year and 30% thereafter.

If the value of the asset “pool” is less than $20,000, it can be immediately deducted until the end of June 2017. Tax Time E.O.F.Y

With E.O.F.Y fast approaching, Now is the time to get ahead of the game, Replace and or Upgrade your Equipment and Software.

Don’t leave it to the last minute or you could miss out.

How Can My Business Utilize this Advantage?

An eligible small business since 7.30pm (AEST) 12 May 2015 can claim an immediate deduction for any software purchased off the shelf, costing less than $20,000 that is used exclusively in the business.

An eligible small business can also claim an immediate deduction for the cost of developing software for use exclusively in its business where the cost is less than $20,000.

Hardware is you’re most beneficial asset within any business structure.
This is not limited to only hardwired Desktop computers, you can extend to portable options including Laptops, Tablets, Mobile Phones and Desktop phone system handsets (Land or VoIP).

Security Products – Do you have SonicWall and Full AntiVirus Protection on ALL devices?

Business WiFi – Is your business WiFi weak or loosing connectivity? CLICK HERE

Dual Monitors & Stands – Do you wish to increase your productivity and move seamlessly between applications without losing space on your desk? CLICK HERE

Servers – The server has transformed how small businesses operate, and with falling costs and improving efficiency, there has never been a better time to start using a server in your business – but which one should you choose?

Printers – Do you require Desktop Printers or an All In One Business Enterprise Networked Printer?

Hard Drives – Do you need more space on your Computer or a portable External Hard Drive?

*Please Note: We are not providing financial advice, Please seek advice from your Accountant before proceeding with decisions.

If you would like to learn more about Replacements and or Upgrades to your business assets or have questions, feel free to give us a call or contact us via email.

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