none

LAST CHANCE TO CLAIM THE $20,000 INSTANT ASSET WRITE-OFF?

24-01-2018
by 
in 
Lots of money

This year looks likely to be the last chance for small businesses to take advantage of the Federal Government’s $20,000 instant asset write-off. So any business with an annual turnover of less than $10 million has until 30th June 2018 to make a qualifying investment.

The scheme originated in the May 2015 budget as part of the Growing Jobs and Small Business package presented by Joe Hockey. Since then, it has allowed companies to write off asset investments up to $20,000 in a single go, rather than deducting them over time.

The scheme has been extended in successive budgets, including 2017, when the definition of a small business was extended to cover companies with turnover up to $10 million (formerly $2 million).

This year, the scheme applies to almost any asset acquired before 30th June 2018 (both new and second-hand), including industrial equipment, vehicles, tools and electronics.

And, in the case of expenses such as a website, some parts are considered capital assets and can be written off under the $20,000 tax break. However, in-house software is specifically excluded.

There is also no limit to how many assets for which the deduction can be claimed. However, each one must cost less than $20,000.

From 1st July this year, the asset limit will revert to $1000… unless, of course, it is extended for another year.

We’ll be reminding all our readers of the impending deadline as it draws nearer. And the April issue of Industry Update magazine will include a special feature focusing on the types of equipment eligible for the scheme.

Related news & editorials

  1. 14.11.2018
    14.11.2018
    by      In
    Although Australia’s small and medium-sized businesses generate employment, drive innovation and boost competition, it has always been difficult for them to get credit finance from banks, especially in the past few months, due to the royal commission into financial services, stricter loan... Read More
  2. 01.11.2018
    01.11.2018
    by      In
    The growth of the manufacturing sector continued through October 2018, with the Ai Group’s Performance of Manufacturing Index holding firm at 58.3, just a tick below September’s rating of 59. The 25th consecutive month of PMI ratings above 50 (indicating growth) comes with further encouraging... Read More
  3. 22.10.2018
    22.10.2018
    by      In
    St.George Banking Group, UNSW Sydney and the Advanced Manufacturing Growth Centre (AMGC) are teaming up to advance Australian research and accelerate the introduction and commercialisation of new manufacturing technologies.
    The alliance brings together three different strands of the national... Read More
  4. 09.10.2018
    09.10.2018
    by      In
    Integrated Office Solutions has an intriguing proposition for any company (manufacturing or otherwise) that is experiencing difficulties recruiting and retaining staff in roles that are not location dependant. Why not outsource the roles or set up a team in a country where skills are plentiful and... Read More