$20,000 Asset Write-off extension
Treasurer Scott Morrison revealed the highly popular asset write-off measure would be extended, and also be made available to businesses with a larger turnover of up to $10 million.
“Small businesses with a turnover up to $10 million will continue to be able to immediately write off expenditure up to $20,000 for a further year,” he said.
The extension will now expire on June 30, 2018.
$20,000 asset write-off
From 12 May 2015, small businesses with aggregate annual turnover of less than $2 million are immediately able to deduct any new assets purchased, provided the assets cost less than $20,000.As reported in the Sydney Morning Herald click HERE for the article.
Subject to the passage of legislation, the Australian government has also proposed that the $2 million threshold will increase to $10 million from the 1 July 2016. This will apply for assets acquired until 30 June 2017.
The $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they wish. For example, a small business owner may choose to acquire 5 paintings of $20,000 each, for a potential deduction of $100,000.
Professional advice is advised to determine whether you are able to claim a deduction.