Don’t throw away the $20,000 tax advantage
Time is running out and on the 30th June 2017 the 20,000 tax incentive for small businesses in Australia will be gone. (Sorry New Zealand & Fiji this tax benefit is limited to Australian businesses only).
I am talking about the $20,000 instant write off for any assets purchased for businesses that has a turnover of less than 2 million in the financial year. The saving means you do not have to write the asset off over years, gaining the benefit immediately.
Personally each of the businesses maximise the use of this and other legitimate tax benefits allowing the business to expand and prepare as an investment for future years. This strategy also helps with cash flow.
Consider items like the list below before the end of June to get the best advantage.
- Web site build & design
- Social media branding – design
- Air conditioners (update or replacement)
- Laptops / computing equipment / server hardware updates
- Printers, scanners, UPS,
- Solar systems
- Software purchases
- Software development, (providing it is exclusively for your business)
- Training course development
- Cars / Motorcycles / Vehicles / Transportation
The items you can claim as a legitimate tax deduction will depend on your business purpose and category. I always check with my accountant before investing in the item.
I know that services businesses like Greymouse (web, marketing and projects team) have project work lined up to complete before the end of the financial year so I suggest you do not wait. Delays could become more expensive on the 1st July 2017, when the tax break windows closes.
Act now before it is too late
The window is closing and no one knows if this tax benefit to small business will ever be repeated. There is enough red tape to cause most businesses owners to drown in it. I suggest you consider carefully what investments you can make in your business before 30th June 2017 so you do not throw away this benefit.