It’s official – the $20,000 small business tax write-off scheme will be extended! Small businesses with a turnover of less than $10 million can immediately write-off expenditure up to $20,000 for a further year.
The Treasurer said “Small businesses owners are out there growing their businesses every day. They deserve our respect and support”
Prior to the introduction of the scheme, small businesses could only write-off assets worth up to $1000.
Last year the government also dropped the tax rate for small companies to 27.5 per cent — the lowest level in 50 years.
The popularity of the tax concession saw almost 100,000 small businesses make claims in the first six months of its operation. Businesses claimed a total of $418.5 million between July 1 and December 15, 2015, compared with only $250 million for the same period the year before.
What’s included? Anything under $20,000 is immediately 100 per cent tax deductible.
All depreciating assets are included under the scheme, including:
- Computer hardware – computers, modems, printers, iPads, tablets, mobile phones, laptops, etc
- Office Tools and equipment
- Office fit-out assets – office furniture, desks, chairs, office furnishings, air conditioners, signs, office fittings and more
What does this mean for you? It means there has never been a better time to start your own small business, with the government offering such huge tax incentives and tax write-offs for small businesses!
Check with your accountant on everything that you can claim!