When you combine the current low interest rate environment with the Instant Asset Write-Off, there has rarely been a more favorable time for small businesses to invest in plant and equipment.
The Small Business Instant Asset Write-Off allows small businesses (those with a turnover of less than $2 million including the turnover of related entities) to claim an outright deduction for the full cost of business equipment purchased under $20,000 (GST-exclusive). Most equipment (new or second-hand) is eligible including motor vehicles. To claim a deduction in this financial year, the equipment must be not only purchased but also installed ready for use before 1 July 2017. From that date, the Small Business Write-Off threshold reverts back down to $1,000.
Watch This Space
Legislation is currently before the Federal Parliament to increase the Small Business Turnover Threshold from $2 million and $10 million. If this legislation passes through parliament, Treasury estimates that this change will open the way for an additional 90,000 to 100,000 businesses (i.e. those with a turnover of between $2 million and $10 million) to access the $20,000 write-off, plus a range of other Small Business Concessions. We will keep you posted on the passage of this legislation through Parliament.
Please be advised that there will be NO FAX facility available at SME Business Accountants from the end of this week.