$20,000 Tax Break for Small Business!

Author: Zac   Date Posted:2 June 2015 

$20,000 Tax Break for Small Business!  main image

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).
 

What’s covered?

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.
 

More information

For further information please consult your accountant, tax advisor or the Australian Taxation Office (ATO).

 


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