“What exactly is the $20,000 asset tax break?
Are you wondering what all this talk of the $20,000 tax break for small businesses is all about?
It is an immediate tax deduction not a rebate for assets purchased by small businesses after the 2015 budget (12 May 2015) to reduce your tax. If your business turns over less than $2m per annum you can write off assets purchased up to $20,000. Purchases may include plant, equipment, furniture or vehicles – both new &/or used.
So in short:
- Assets must cost less than $19,999 (excluding GST).
- A small business is one with an aggregated turnover of less than $2,000,000.
- Can be new OR used asset.
- Purchases must after 7.30pm on 12 May 2015 until 30 June 2017.
If you are unclear on if you can claim an item – contact David Johnston today or phone 07 5445 1697 to discuss the eligibility of an item you may wish to purchase.