You might have just 7 days left to purchase your next small plant item or motor vehicle for your business and still get the accelerated tax write-off!
The Coalition have stated that their budget policy is to scrap the instant tax write off for :
- Plant & Equipment purchases up to $6,500
- The first $5,000 of a motor vehicle purchase
The Coalition of course have to win Government – but if they do, it appears likely the above tax benefits will cease – presumably backdated to Election day.
Their policy is to remove the Carbon Tax and with it, the sweeteners Labor brought in at the same time.
I have not seen or heard any discussion on the No Till 15% refundable tax offset – but might this also be under some risk? This tax benefit was also a Carbon Tax initiative. If you have been seriously considering the purchase of new No Till machinery – perhaps you should get an order placed with your machinery dealer?
The Coalition have also stated they will remove the “Loss Carry back provisions” for companies – but this is unlikely to impact many and there is nothing you can do to impact your position at this time anyhow.
In summary, if you think the Coalition will win the Election, get out and purchase those plant items costing less than $6,500 you always needed! If you have been planning to buy another motor vehicle – you have 7 days to get the first $5,000 as an outright deduction.
Remember – only purchase what you need and never do anything solely for tax purposes – but if it is on your planning list – go for it this week!
Finally – these concessions only apply to SBE businesses – (less than $2m turnover). Larger businesses do not get the accelerated benefits so these changes mean nothing to them.
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