$20,000 Tax Deduction for IT Equipment Extended

Overhead view of hands typing on a laptop beside a smartphone

Small businesses have this financial year and the next to write off their purchases of new computers, laptops, printers or other IT equipment.
The Federal Government has extended its instant asset write-off scheme for small business to automatically claim up to $20,000 for buying assets such as computers, vehicles, and other office
equipment.
The tax incentive was originally intended to end in 2016, then it was extended for a further year and now it’s been extended again until June 30, 2019.
Any business with a turnover of less than $10million can claim an immediate tax deduction on all capital purchases up to $20,000 per item. If cashflow permits, it’s a great way to buy new equipment to boost your company’s productivity such as:

Computers, laptops, phones and printers
Plant and equipment
Motor vehicles
Office furniture.

There is no limit to how many assets for which you can claim the deduction. However, each one must cost less than $20,000.
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 tax back in one hit.
Remember, although the tax break lives on for one more year, it still makes sense to make capital investments before 30 June this year in order to optimise your tax position this financial year, and also plan purchases for the next financial year.