Managing a business involves a lot of decision-making, especially when it comes to financial matters. Understanding cost vs benefit, break-even analysis and interest rates is essential to making informed decisions that will benefit your business in the long run.
Did you know that the Instant Tax Write Off Scheme is due to end THIS COMING June?
We don’t want you to miss out!
During the pandemic, in an effort to support Australia’s recovery, a package of relief measures was made available to small business owners allowing them to save on tax when investing in capital assets.
This is about to come to an end…
Previously known as the Instant Asset Write-Off (IAWO) Scheme, the tax write off can be done under Temporary Full Expensing, or TFE for short.
The scheme allows businesses to claim an immediate deduction for eligible assets that cost less than the threshold – currently set at $150,000 per asset.
This means that businesses can claim the entire cost of the asset in the year they purchase it, rather than having to depreciate it over a number of years.
The TFE is scheduled to last until EOFY 2023 – in 8 weeks – so it’s vital that businesses take advantage now.
KEY POINT
In order to qualify, any assets purchased must either be in use or installed and ready for use by 30 June 2023.
If assets have been ordered and paid for but haven’t actually arrived at your premises (or they have arrived but they are still sitting in boxes in a corner of your workplace), the instant deduction cannot be claimed for them.
WHAT ASSETS ARE INCLUDED IN THE WRITE-OFF?
Most Australian businesses can now immediately deduct the full business related costs of all purchases of capital items – typically depreciating assets bought for the business – which could include:
- fixtures and fittings (such as shop or café fit outs),
- technology, such as laptops, computers, EFTPOS systems and security equipment,
- tools, plant and equipment,
- office furniture,
- motor vehicles such as utes, delivery vans and most cars (deductions for these are capped at a certain limit each financial year – $64,741 in 2022/23),
- motorbikes, and
- solar systems.
This is a fantastic opportunity for businesses to claim immediate tax deductions on the purchase of new or used assets for their business.
Contact Us
Sam Wheeler at Laurentide Financial Services: [email protected]
Speak with us to ensure you comply with your tax return obligations when claiming or for assistance with your tax return this financial year.
Phone 02 6862 6438 or visit https://www.mdtrimmerandco.com/
Additional Information can be found on the ATO website
https://www.ato.gov.au/Business/Instant-asset-write-off
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