Every small business could do with more money in its pocket. The ATO $20k tax break for small businesses was extended to June 30, 2018 which is fast approaching. Tax breaks like this can help fund vital assets that keep your business moving or grow it in exciting new ways. Now is the time to take advantage of the $20k instant asset write off. If you have some business costs on the near horizon, now could be the perfect time to capitalise on the immediate tax write-off.
How does the instant asset write off work?
Are you keen to put the $20k instant asset write off to work for your small business? Your first step is to make sure your business qualifies. If you have an aggregated turnover of less than $10 million, chances are high that your business is eligible for the instant asset write off.
Qualifying opens up a host of opportunities to take your business capabilities up a notch. Bear in mind that the tax break will apply to most new and second hand depreciating assets bought for your business in the 2018 income tax year. Better yet, the $20k instant asset write off limit is on a per asset basis. That means you can use the tax break several times. So to qualify for the instant asset write off, your assets must cost $20k or under (excluding GST) and:
- Be bought and used by the business in the 2018 income tax year; or
- Be installed ready for use in the business in the 2018 income tax year
If your acquired asset costs more than $20,000 then it will not be eligible for the instant asset write off. Rather the small business depreciation pool will apply to this acquisition. In other words, you will not be able to deduct the balance immediately.
What does your instant asset write off cover?
Different businesses require different assets to grow. Now that you know how the instant asset write off works, you can leverage it to progress your specific goals and operations. Just a few examples of what you can immediately write off under the tax break include:
- A new website
- Company or trade vehicle
- Technologies like laptops, smart phones or printers
If you are a small business, you can still take advantage of the $20k tax break but time is ticking. Invigorate your business with the instant asset write off and supercharge these opportunities with the right small business funding solutions. Look first to Capify to capitalise on important opportunities with the flexible funding options.