The threshold for the special immediate write off for tax purposes for assets costing less than $20,000 net of GST was to be reduced to just $1,000 from 1st July 2017.
In the last couple of years, this has been available for all businesses with a turnover of less than $2m. However, this turnover threshold is being increased to $10m from 1st July 2016.
The Federal Budget presented on the 9th May 2017 extends the availability of the special write off until 30th June 2018.
If a depreciating asset is purchased after 30th June 2018 and costing more than $1000, the asset will be added to your SBE asset depreciation pool, depreciated at 15% in the year of purchase and 30% thereafter.
Of course, we do not suggest buying an asset just because it’s a tax deduction – merely that the timing of necessary asset purchases be looked at to take advantage of the current generous asset write off provisions, particularly as it has now been extended for a further 12 months.
This extension is good news for small business entities.