Have you been thinking about buying new computers, printers or other IT equipment for your business? Well now is an ideal time to make that decision.
If you run a small business you can automatically write off any business equipment you buy costing less than $20,000, but you only have until June 30 to make your purchases.
The instant tax deduction applies to what are termed “physical assets”. Equipment, vehicles, tools and electronics, such as computers and phones can all be claimed. There is no limit to how many assets for which you can claim the deduction. However, each one must cost less than $20,000.
It should be remembered though that the deduction only applies to assets used for business purposes. If an asset – for example a laptop – is for both business and personal use, you can only claim the deduction on the portion that is used for business.
You are eligible to claim the automatic deduction for each asset (new or second hand) costing less than $20,000 if:
- You have a turnover of less than $10 million (increased from $2 million on 1 July 2016), and
- The asset is first used or installed ready for use in this financial year
This will be the last opportunity you have of claiming the $20,000 tax write off.
Next financial year the threshold is being reduced to only $1,000.
With the new data breach laws in full swing from the OAIC, it is a great opportunity to invest in security equipment to protect your business.
Your tax consultant or the ATO website has more information as to how you can benefit from the scheme, which expires 30 June 2018.