If you're a small business owner, the 2017 Federal Budget has one very useful inclusion for you: the continuation of a $20,000 instant asset write-off for equipment expenses.
Ticking a box that was forecast back in January, the scheme that was originally planned to run from 2015 to 2017 will be continued in the 2017-18 financial year.
If you're running a business with an annual turnover of less than $10 million, you can claim individual expenses of up to $20,000 worth of depreciating assets in each single instant write-off each financial year. That $10 million threshold has been raised from the previous $2 million, and the government also says it will lower taxes on small businesses.
Medium businesses aren't happy they miss out on the instant write-off, though. Mid-market accountancy firm Pitcher Partners' managing director John Brazzale: “We are disappointed that more has not been done to lower taxes and extend the instant asset write off to mid-sized businesses. Our clients sought greater simplification of the business environment, including lower taxes, and little has been done in this area to build on last year’s cuts."
Are you eligible for the government's $20,000 small business tax deduction? If so, what kind of gear are you actually allowed to claim? This Etax infographic breaks down whether or not your business purchases will make the cut.
It can be hard to keep on top of all the various tax breaks and incentives small and medium businesses are eligible for. There are a lot of them. From deducting your stationary to grants for safety equipment. And this doesn't even include the lower company tax rate for eligible small businesses. Here are a few other tax breaks and incentives your business might benefit from.
Former Federal Treasurer Joe Hockey introduced a tax initiative where small business could write-off $20,000 worth of depreciating assets, such as vehicles, computers and other office equipment, back in 2015. The scheme was set to run from July 2015 to June 2017 but that deadline may be extended. Here's what you need to know.