$30,000 Instant Tax Deduction for IT Equipment
Now is the time to upgrade your business IT – PCs, laptops, printers and business phones.
The Australian Government has extended its instant asset write-off scheme for small business to automatically claim up to $30,000 for buying equipment for your business before June 30. Your old PCs and laptops can actually be costing more money because of the increasing need for repairs, IT security risks, and the negative effect outdated technology has on productivity and also staff morale.
The Government has now made it much easier to replace your obsolete equipment.
Any business with an annual turnover of less than $50million can now claim the immediate tax deduction.
Your business has this financial year and also the next to write-off purchases of new computers, laptops, printers, business phones or other IT equipment.
There is no limit on how many assets you can buy to claim the deduction. However, each piece of equipment must cost less than $30,000.
In the old days – before the tax break – it was necessary to depreciate the cost of all these items over several years. Now, you can claim all the money back in one hit.
Remember, although the tax break has been extended to 2020, it still makes sense to make capital investments before June 30 to utilise the tax write-off this financial year.
This way you can plan ahead to purchase other equipment you need for your business next financial year too.
More information about the instant asset tax write-offs is available from your accountant, or you can visit the ATO website.