*These changes are proposed to apply from 7:30 pm (AEST) 12 May 2015.
The government will significantly expand accelerated depreciation for small businesses. It will do this by allowing small businesses with aggregate annual turnover of less than $2 million to immediately deduct assets they start to use or install ready for use, provided the asset costs less than $20,000 (currently, an immediate write-off is generally available for assets costing less than $1,000). This will apply for assets acquired and installed ready for use between 7.30pm (AEST) 12 May 2015 and 30 June 2017.
Note: $20,000 tax deduction does not mean $20,000 tax reduction.
Spending money in order to gain tax reduction is not a good business decision, if you spend money on something you don’t require, you might be saving 30% tax on it in a company structure, however if you decide not to spend, you will end up paying 30% tax but will still have 70% leftover.
Take help from small business accountants and save your money.
Don’t spend on assets you don’t need. For more info, visit Booksmart Accountants.