Budget Night 2015 brought some welcome tax relief for small business – the ability to claim an immediate tax deduction, for assets (with very limited exception) costing less than $20,000. Previously the deduction was limited to assets costing less than $1,000.
The relief was however, only intended as temporary – 30 June 2017 is your last chance to claim the deduction. To be eligible:
- You must be in business, and have turnover of less than $2,000,000 (Rental properties are not considered to be a business for these purposes)
- The asset must have been purchased AND installed ready for use, between 12 May 2015 and 30 June 2017
- The asset can be new or second-hand
- The asset must cost less than $20,000; if you are registered for GST it is the GST-exclusive amount that must be below this amount
Whilst we do not advocate for purchasing assets solely for the purposes of obtaining a tax deduction, if you are considering buying assets it may be worth considering doing so prior to 30 June 2017.
At MPT we are specialists in tax for small business and would be happy to discuss any aspect of the above with you further.