With the government recently extending the $20,000 instant asset write-off to 30 June 2019, eligible small businesses now have just over 5 months to work out whether it’s beneficial to bring forward asset purchases in order to take advantage of the immediate deduction on offer.
Small businesses with a turnover of less than $10 million are eligible, so long as the asset is first used or installed ready for use by the 30 June 2019.
It is worth a note that only assets that cost less than $20,000 (excluding GST if you are registered for GST) can take advantage of this immediate deduction. Assets costing $20,000 and over (excluding GST if you are registered for GST) would be assigned to a general small business pool and depreciated over several years.
From 1 July 2019 – unless further extended mind you – only assets under $1,000 (excluding GST if you are registered for GST) would be able to be instantly written-off, so there are tax planning opportunities available for businesses looking at adding to or updating assets within the business in the near term.