In a pre-election pitch to small business, the government has proposed another boost to the instant asset write-off which would increase the threshold and give medium-sized firms access to the scheme. But don’t go splashing your cash yet.
The threshold for the instant write-off would increase from $25,000 to $30,000. While this is good news for small business owners the important thing to note is that as of 3rd April the government is yet to get the $25,000 increase legislated, which means that any business can really only take the $20,000 deduction until the other proposed thresholds are passed through parliament.
While you will hear a lot of talk about the $30,000 deduction giving a big boost to the small businesses of Australia it’s really important to look at the fine print. For example there are some types of assets the ATO has excluded from the scheme or what happens when you buy a business use asset which is more than the $30,000 limit or what happens if the asset is not ready for us by end of financial year and many more…
While we are no accountants, our experts at CarBeagle can provide genuine advice to assist with purchase of your business assets. So call us today to have a chat with our friendly staff.