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BUYING BUSINESS
ASSETS?

$20,000 instant asset write-off
New or Used Business assets
Don’t have to be registered for GST

Treasurer Scott Morrison looks set to extend $20,000 asset write-off for small businesses

You are eligible to use simplified depreciation rules and claim the immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

  • You have a turnover less than $10 million, and
  • The asset was first used or installed ready for use in the income year you are claiming it in.

If you buy an asset and it costs less than $20,000, you can immediately deduct the business portion in your tax return.

It seems some tax agents have under-claimed by not applying all the simplified depreciation rules. To use simplified depreciation rules correctly you must:

  • write off eligible assets costing less than $20,000 each
  • pool most other depreciating assets that cost $20,000 or more
  • write off the small business pool balance if it is less than $20,000 at the end of an income year
  • Only claim a deduction for the portion of the asset used for business or other taxable uses.

The $20,000 write-off threshold now looks like it will extend until 30 June 2018

The instant asset write-off scheme is a real benefit to small businesses looking to acquire business or work-related capital equipment or assets. If eligible, the full amount of the asset up to the $20,000 limit cans we “written-off“ in one go. This will essentially reduce your Taxable income by the same amount.

What is my definition of the“Cost?”

The cost of an asset includes both the full price paid including transportation and installation cost. The cost can include amounts you spent on improvement or modification of the asset.

If you are registered for the goods and services tax (GST), you exclude the GST amount you paid on the asset when you calculate your depreciation amounts (and your instant asset write-off threshold is $20,000 exclusive of any GST). This is because you will claim the GST as an input credit for the relevant BAS period.

What Business assets could be eligible of the instant write off?

  • Work-related vehicles
  • Machinery
  • POS and display equipment
  • Hand Tools
  • Restaurant paging systems
  • Storage & refrigeration
  • WI-Fi or IT infrastructure
  • VoIP Telephone systems
  • Business use TV and Monitors
  • Digital Signage
  • Security upgrades
  • Audio Visual equipment
  • Networking and Data storage
  • Air conditioners
  • Office furniture
  • Shop fittings and Fitouts
  • Kitchen equipment

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Copyright 2018 Commercial Finance Corporation Pty Ltd . All rights reserved.
Commercial Finance Corporation Pty Ltd ABN 21 059 622 356

Australian Credit Licence 394741

BUYING BUSINESS
ASSETS?


$20,000 instant asset write-off
New or Used Business assets
Don’t have to be registered for GST


Treasurer Scott Morrison looks set to extend $20,000 asset write-off for small businesses

You are eligible to use simplified depreciation rules and claim the immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:

  • You have a turnover less than $10 million, and
  • The asset was first used or installed ready for use in the income year you are claiming it in.

If you buy an asset and it costs less than $20,000, you can immediately deduct the business portion in your tax return.

What Business assets could be eligible of the instant write off?

  • Work related vehicles
  • Machinery
  • POS and display equipment
  • Hand Tools
  • Websites
  • Restaurant paging systems
  • Storage & refrigeration
  • WI Fi or IT infrastructure
  • VoIP Telephone systems
  • Business use TV and Monitors
  • Digital Signage
  • Security upgrades
  • Audio Visual equipment
  • Networking and Data storage
  • Air conditioners
  • Office furniture
  • Shop fittings and Fitouts
  • Kitchen equipment

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SPEAK TO A CONSULTANT

Ph: 0418 221 487
Ph: 1300 969 059

Copyright 2018 Commercial Finance
Corporation Pty Ltd .  All rights reserved.
Commercial Finance Corporation Pty Ltd
ABN 21 059 622 356

Australian Credit Licence 394741

Disclaimer- All applications are subject to the Lenders approval and discretion. Rates on offer may change at any time, fees and charges will apply. All Self-Declared loans are only for registered ABN holders. Fees and Conditions will apply

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