video-banner
none

DON’T MISS OUT ON THE WRITE-OFF

01-02-2018
by 
in 

As a small business owner myself, I have been surprised to find how poorly understood the Federal Government’s $20,000 instant asset write-off scheme is. And, as a result, small businesses have been putting off purchases simply because they don’t realise that they can claim almost immediately.

The greatest misconception is that the allowance is $20,000 per company per year.

Wrong: the $20,000 refers to the maximum value of each asset – and there is no limit to the number of claims that can be made in a year.

We here at Industry Update have taken advantage of the scheme to upgrade several of our computers and expand our video production capabilities. Each of the asset purchases is valued at less than $20,000, and all are eligible for write-off this tax year.

Another misconception is in the definition of a small business. This is simple. Any business with a turnover of less than $10 million is eligible.

The third misconception is the duration of the scheme. And while the government has indeed been extending it each year, it would be foolish to assume that it will continue into the 2018/19 tax year.

The scheme is designed to encourage the sorts of investments that help small businesses to grow, and there are very few exclusions on the equipment that is covered.

The time to invest is now, and to help encourage that investment, we’ll be running a special feature in the April issue of Industry Update magazine focusing on the types of equipment eligible for the scheme.

 

Related news & editorials

  1. 13.11.2019
    13.11.2019
    by      In
    Is it just me, or is there more than a little irony in the “lucky country” tag that Australia has worn with pride for so long?
    Certainly, with the effects of the continuing drought devastating our rural populations and a fresh wave of bushfires tearing indiscriminately through country towns and... Read More
  2. 08.10.2019
    08.10.2019
    by      In
    While viewing the rough cuts of the first of our documentary videos on workplace safety, I have been staggered by some of the statistics that the production team have gathered concerning workplace fatalities. And frankly they are still way too high.
    We do tend to think of today’s Australia as... Read More
  3. 29.07.2019
    29.07.2019
    by      In
    As a small business owner myself, I can fully sympathise with the problems of small businesses in keeping control of cashflow thanks to late payments. And if the results of the latest survey by business software company Xero are to be believed, the situation is getting worse.
    So it is great to see... Read More
  4. 19.06.2019
    19.06.2019
    by      In
    Over the past few weeks, it’s been interesting in a changing industry to reflect on the resurgence of the traditional aspects of our business. For while Australian manufacturing is evolving into its new shape in the 21st century, the way the industry takes itself to market is showing that the old... Read More