Chat with us, powered by LiveChat

Reduce your business’s tax bill in 2019

May 14, 2019

What is the instant asset write-off and what has changed for 2019?

Introduced in 2016, the instant asset write-off was initially set at $20 000 for small businesses only and was due to end on 30 June 2019.

That changed in April this year, with the announcement that any business with turnover less than $50 million can now use the instant asset write-off until 30 June 2020.

What’s more, the threshold has increased to $30,000 for assets purchased after April 2019.

Keep in mind that from 1 July 2020, the threshold will revert to just $1,000.

This means you have a short period of time to make major savings on your tax bill while investing in equipment – new or used – that can make a big impact on your business.

Seize the benefits of the instant asset write-off now through suitable financing options, increasing your business cash flow

The scheme allows you to claim the full tax deduction for a piece of equipment the year it is bought or installed, rather than claiming the amount gradually over several years.

What’s more, multiple assets can be purchased if each is under the $30 000 threshold.

If your business would benefit from some new equipment, but is not in a position to make a significant purchase in such a short timeframe, let alone multiple purchases up to $30 000, what are your options?

  • Speak to us about flexible finance options while still taking full advantage of the asset write-off scheme
  • In addition to financing the equipment and receiving the asset write-off, you can also finance the GST and claim the full GST amount back in your next BAS return
  • Talk to your accountant about how claiming the equipment’s depreciation can help your business.

It’s time to act before this window closes

There are several ways you can fund the instant asset write-off to suit your cash flow, so be sure to ask us how to get the absolute maximum benefit for your business.

For further information, talk to your accountant or visit the ATO website to learn more.

The instant asset write-off scheme allows you to claim tax deductions on multiple pieces of equipment worth up to $30 000 each. This makes it an effective way to make major upgrades to your business while taking advantage of the instant asset write-off.