Time is running out to make use of the Australian Government’s $20,000 instant asset write-off incentive. Whilst the Government has suggested the scheme may be extended, small businesses have officially until the 30th of June 2018 to take advantage of the incentive before the threshold reduces to $1000 on 1st July 2018.
Not sure what the $20,000 instant asset write-off incentive is?
If you buy an asset (new or second hand) for less than $20,000, you can claim an immediate deduction in your tax return for the business portion of each asset costing less than $20,000.
You are eligible to use these simplified depreciation rules if:
you have a turnover of less than $10 million (increased from $2 million on 1 July 2016), and
the asset was first used or installed ready for use in the income year you are claiming it in.
Make use of the Government incentive before it could reduce on the 1st July 2018.
If you’ve been thinking of buying a new spreader or upgrading your current model, now’s a great time to get your order in to utilise the $20,000 incentive. You just need to have an order in the system before the cut off date to take advantage. Don’t wait until the threshold possibly changes to $1000 on the 1st July. Act now.
For more information give us a call on 1800 306 308 or contact your accountant.