The increase to the instant asset write-off is now law. From 7.30 pm on 2 April 2019 small business entities can access an immediate deduction for depreciating assets costing less than $30,000. From 1 July 2018 to 29 January 2019 the threshold is $20,000; from 29 January 2019 to 2 April 2019 it is $25,000.There are three different thresholds in the one financial year.
Medium business entities (those with turnovers between $10 million and $50 million) can now access the instant asset write-off for depreciating assets costing less than $30,000. There are some complications with medium size businesses so speak to your accountant before purchase.
The increase in these threshold s can now be taken into account for tax planning purposes but the usual caveat applies. Buy an asset because it will benefit your business and not because of the tax saving. The tax savings should be the icing on the cake. Speaking of cake you cannot have your cake and eat it too. By claiming the instant asset write-off you forego the depreciation you could otherwise have claimed in following years.
Please contact the office to make a tax planning meeting today.