Instant asset write-off

Blog Author: Aaron Smith | May 15th, 2013

moneybagsWant to be able to immediately write off assets valued at less than $6500?

If you’re a small business with an aggregated turnover of less than $2 million and you didn’t know you could, here’s what you need to know.

Simpler depreciation rules from 2012-2013 income year include the small business instant asset write-off threshold increasing from $1,000 to $6,500.  You can write the depreciating asset off at the end of the income year where you either:

  • start to use it for a taxable purpose
  • have it installed ready for use for a taxable purpose.

Okay, great.  What does this mean?  It means if a small business invests in laptops, PCs, desks or even cloud-based IT solutions valued at less than $6500, they can claim an immediate deduction for that income year.

A recent survey commissioned by MYOB found that almost one in three small business surveyed were unaware of the instant asset write-off.  That’s a fairly high number of SMBs missing out on an opportunity to reduce their tax bill on company profits!

For more information:

Small business concessions: changes to simpler depreciation rules.

Source: SMEs in the dark over $6500 instant asset write-off.

Please be sure to discuss further with your tax advisor or the ATO for further details and confirmation and advice on this matter.

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