We all love to give presents to our friends and family during the Christmas period but there has never been a better year to give your business a Christmas Present.
In May 2015, the Government provided a significant incentive for small business owners to purchase business assets up to the value of $20,000.
What does this mean?
This means that a small business can claim a tax deduction for the cost of each and every depreciating asset that they purchase for $20,000 or less. For assets costing more than $20,000, small businesses can depreciate the cost of such assets at 15% in the first year and 30% each year thereafter.
The low pool value threshold will also increase to $20,000. This means that an immediate deduction is available if the pool balance is less than $20,000 at the end of an income year that ends on or after 12 May 2015 but on or before 30 June 2017.
What can you buy?
There are generally no restrictions to the types of depreciating assets that you can acquire providing that they are used for business purposes. Common assets are:
- Business utilities and motor vehicles;
- Business tools;
- Computers & telephones;
- Tool sheds; or
- Machinery and equipment.
QC Accountants are here to help. If you are considering buying your business a christmas present, we encourage you to contact us on 07 5593 5848 or at firstname.lastname@example.org.