This year’s Federal Government’s instant asset write-off initiative is better than last financial year
Business owners looking to buy assets worth less than $30,000 can instantly write it off and save themselves cash this tax season
If you are considering buying a business asset before 30th June 2019, it’s important that you understand how it all works.
What is the instant asset write off?
It is a deduction that small businesses can instantly write off on assets purchased with a value of $30,000, excluding GST
What this means is that instead of deprecating the asset over time and claiming part of the original expense over multiple years, owners can claim the entire expense in the financial year in which the asset was purchased.
It’s a scheme introduced by the federal government for businesses with a turnover of less than $10 Million. This is an increase from the $20,000 limit set in the 2017-18 initiative.
What does it mean to you and the business?
If you are a small business you can claim an instant write off for any single business asset less than $30,000 excluding GST
Which means that you save on tax as you can claim the whole expense in that financial year, in turn, lowering your taxable income
“Businesses can go out and invest today, whether it’s a vehicle, a piece of plant or equipment, all of it, up to $30,000, immediate write-down” – Scott Morrison
What assets can be written off?
Some examples of assets that qualify are
- Vehicles such as trucks, vans & farm equipment
- Furniture, carpet & installations
- Tools, white ware & work equipment
- Computers, electronics & cell phones
- Any business asset worth less than $30K
Check out the assets we can help finance
Not all business use assets can be written off for a full list of excluded items please click the link of items ATO has excluded from the scheme
How to check if I am eligible?
- You are small business as recognised by the ATO
- Have bought a business use asset less than $30K
- You have purchased or will purchase the asset before end of financial year
How to claim the instant asset write off?
Please speak with your accountant who can assist you with this or visit the ATO website on the following link Instant asset write-off thresholds
Need assistance with finance?
We understand that most businesses need assistance with finance to purchase these assets. At Car Beagle our team of experts are ready to help with all your finance requirements. We have access to over 30 different lenders and we are confident that we will find a loan that suits your specific needs / circumstances. We do all the legwork for you to ensure you get the best deal and can take advantage of this great initiative.
Get in contact with the CarBeagle team today on 1300 225 525 for an obligation free chat about your finance needs.