If you’re a small business with an aggregated turnover of less than $2 million and you didn’t know you could, here’s what you need to know.
Simpler depreciation rules from 2012-2013 income year include the small business instant asset write-off threshold increasing from $1,000 to $6,500. You can write the depreciating asset off at the end of the income year where you either:
- start to use it for a taxable purpose
- have it installed ready for use for a taxable purpose.
Okay, great. What does this mean? It means if a small business invests in laptops, PCs, desks or even cloud-based IT solutions valued at less than $6500, they can claim an immediate deduction for that income year.
A recent survey commissioned by MYOB found that almost one in three small business surveyed were unaware of the instant asset write-off. That’s a fairly high number of SMBs missing out on an opportunity to reduce their tax bill on company profits!
For more information:
Small business concessions: changes to simpler depreciation rules.
Please be sure to discuss further with your tax advisor or the ATO for further details and confirmation and advice on this matter.