The Federal Government has extended the small business $20,000 instant asset write off for another year! Thanks pollies for the hand out until 30 June 2019.
"Great, but what the heck does it actually mean?" we hear you ask. Good question. And the answer may surprise you.
Firstly, it means if you are a small business and buy a business asset valued between $300 and $20,000 (it used to cap out at $1,000) you can claim an immediate deduction in your tax return. Normally you'd have to write it off over a few years (a smaller deduction per year making up the total claim).
Secondly, and we reckon just as important, is that you can choose to take the deduction up front, or use the old method and claim over a few years. Depending on what you got up to in the year (like how much your business earned and other tax claims you may be entitled to) it could actually pay not to use the instant write off.
We know, we know. You're thinking "Well how am I supposed to know!?"...
Don't worry, that's what we're here for. Just give us a call and we can help you work out what's best for you and your small business.