Tax breaks are few and far between, and the $30,000 instant asset write-off scheme is one to take advantage of.
Have you heard of the Federal Government’s instant asset write-off?
If you haven’t, you're not alone. Research has revealed almost half of all Australian business owners are unaware of this initiative and that it could be of great help.
Here's a quick rundown on the instant asset write-off and whether it’s something you should take advantage of.
So how exactly does the Asset Write-Off work?
The $30,000 instant asset write-off can be a huge boost for your business. By using this tax incentive, you can write off the depreciation on work-related asset purchases ‘instantly’ instead of claiming smaller depreciation each year. This means you can spend up to $30,000 on as many assets as you like, decrease your taxable income, which means tax payable overall will be lower.
Are you eligible?
If your business turns over less than $50 million a year, you can claim the $30,000 instant asset write-off on any business assets valued less than $30,000. For instance, if you buy a work vehicle that costs $24,000, and you intend to use it for 50% work purposes and 50% personal purposes, then you can claim $12,000 as a tax deduction. Under this scheme, you can claim it immediately in this year’s tax return – provided you buy it prior to 30 June.
What happens if you’ve purchased something that costs more than $30,000? In this instance, these assets get pooled together and you can claim a percentage of them over time; 15% in the first year, and 30% in the years that follow. After the balance reaches an amount lower than $30,000, you can then write off the balance of the claim as a deduction.
So, what next?
Morris Finance offer a wide range of Business Finance allowing you to be able to purchase eligible assets. Our team of dedicated new business specialists can provide you with information and access to financial solutions that will allow you to grow your business.
Contact Morris Finance today on (03) 5223 3453 to unlock your business potential. We will give you the tools your business needs to get ahead.