Is this your last chance to take advantage of the $20,000 Small Business Asset Write Off?
A couple of years ago the Government introduced this incentive to encourage small business to invest in assets and stimulate the economy; this tax break was finishing 30 June 2017… it has now been extended to 30 June 2018 in the May 2017 budget.
After 30 June 2018 you can ONLY write off an asset costing up to $1,100, not $22,000 ($20,000 + $2,000 GST).
How does it work?
Basically if your business (ABN holder) buys an asset (financed or purchased outright) up to $22,000 including GST by 30 June 2018 that purchase can be 100% claimed as a tax deduction in this year. Usually the tax deductions for assets are claimed over its life, which for a motor vehicle may be over 7 years or for a computer 4 years.
If your business is likely to make a tax loss for the year then the bigger deduction might not provide any short-term benefit to you.