The Right Time for Small Business to Invest!
You may have already heard the Federal Government has recently provided a number of tax breaks for small business (companies with an annual turnover under $2 million).
This means small businesses will be able to claim an immediate deduction for any capital equipment they purchase, where the cost is less than $20,000 ($22,000 inc GST), subject to business use.
The $22,000 threshold will apply to office equipment and other capital purchases acquired and installed ready for use between 13 May 2015 and 30 June 2017. From 1 July 2017, the thresholds revert back to the existing arrangements. Equipment valued at $22,000 or more will not be immediately deductible. However, they may be placed in the small business depreciation pool and depreciated at 15% in the first year and 30% in subsequent years. The pool can be immediately deducted if the balance falls below $22,000 over the period (including existing pools).
What that means to you is that between now and June 2017, you can purchase or finance through Chattel Mortgage any of the following equipment up to $20,000 plus GST through Document Solutions and gain a 100% tax deduction in this financial year and then subsequently in the following years.
- Konica Minolta Bizhub Digital Copiers
- Fuji Xerox Laser Printers and MFD’s
- Computer Equipment – Servers, Desktops, Laptops, etc
- Interactive Touch Screens
- 3D Printers
It is important to note that it is per item, therefore if you purchase three items at $10,000 plus GST, they all qualify for the 100% deduction in that year. It is not a cumulative total.
Click here to view small business tax relief examples for reference.
Get in before the end of the financial year and get your tax benefits this year!
*Disclaimer: Please seek professional accounting advise for further clarifications.