Immediate tax deduction announced.
In last week’s budget the government announced that ” small business can claim an immediate tax deduction for each and every item they purchase up to $20,000.
From tonight, it can be instantly written off to reduce your tax liability.”
So what does this mean for all you business owners. Is it time to rush out and purchase a car?
Here is an excellent, easy to understand article regarding the recently announced Instant write-off for small business assets under $20,000. It talks about what this all means, provides tips and mentions a few of the possible traps.
The tips it mentions are
- This tax concession is ideal for those businesses that were planning to purchase assets anyway or have a real business need to update equipment. If it can improve your bottom line (net profit) then look at taking advantage of the opportunity.
- If you purchase before 30 June 2015, you will get 30 cents back in tax. Purchase after 1 July 2015 and before 30 June 2017 and you will get 28.5 cents back.
- The reality of the ability to pool assets costing more than $20,000 will be that small businesses must purchase assets before June 30, 2015 to ensure that a deduction can be claimed for the written down value in the 2017 financial year.
- The devil will be in the detail, but the instant write off for an asset pool with a value of less than $20,000 would appear to also apply to existing asset pools. This could mean businesses with existing asset pools can claim a full tax deduction for that pool for the 2015 financial year if its written down value is less than $20,000.The article states that ” If used wisely, the instant deduction can be a real benefit to profitable small businesses that were planning on purchasing assets anyway. Talk to your accountant to be sure.”
So if you are going to be advantaged by the new announcement and you are looking for a new vehicle under $20,000’s be sure to check out the huge range of 4×4 and commercial vehicles under 20k Tru-Blue Motors has in stock.