$20,000 Tax Break for Small Business!
Author: Zac Date Posted:2 June 2015
Are you a small business owner?
One of the biggest announcements of the Federal Governments 'Budget: 2015’ is the temporary increase to the instant asset write-off allowing small business to claim back purchases of up to $20,000!
What is the $20,000 tax break?
Small Businesses with an annual turnover under $2M can claim immediate tax deductions for as many purchases valued at or less than $20,000 for the next two years (from 7:30 budget night to June 30, 2017), rather than claim those purchase as deductions spread over several years. This is a huge increase from the current instant asset write-off threshold of $1,000. You can claim the full amount from your income to reduce your tax bill. There is no limit on the number of items a business can claim.
Who is eligible?
The $20,000 tax break applies to actively trading businesses with an ABN that can demonstrate ongoing activity via quarterly Business Activity Statements (BAS).
Any asset that’s involved in running a business is covered under the scheme.
For tradies, workshops, garages, contractors, or anyone that requires tools for work – this means you can claim immediate deductions on any assets related to your business – Tool Kits, Generators, Power Tools, Safety Equipment, and so on! In fact, most products available within the Revolution Industrial Website are eligible for the scheme, up to the value of $20,000! There is no limit on the number of items, only the pooled value!
If the total value of the pool is below $20,000 it can be immediately deducted, assets over the value of $20,000 are not covered but can be fully written of over a longer period.
When does it end?
The $20,000 tax break for small business has started from 7:30pm May 12, 2015 and ends June 30, 2017.
For further information please consult your accountant, tax advisor or the Australian Taxation Office (ATO).