Did you know that if you are a small business with newly acquired assets costing <$20,000, those assets could be eligible for complete cost deduction?
In accordance with the 2023 Federal Budget, small businesses with aggregated turnover of less than $10 million are able to immediately deduct the full cost of eligible assets (costing <$20,000) if they were first used or installed ready for use between the 2023-2024 financial year.
The Australian Government announced this scheme on 9 May 2023 as a way to increase cash flow and reduce compliance for small businesses.
The $20,000 threshold will apply on a per asset basis, so small businesses can instantly write off multiple assets. Assets valued at $20,000 or more (which aren’t eligible for immediate deduction) can continue to be placed into the small business simplified depreciation pool and depreciated at 15% in the first income year and 30% each income year after that.
If you want to take advantage of the opportunity to claim a tax deduction on asset purchases this financial year, it’s not too late. Our asset finance brokers are experts at sourcing options and arranging fast finance for vehicles, machinery, equipment and other asset purchases.
Make the most of this scheme. Give us a call today on 1300 611 331.
For more information on the instant asset write off scheme, visit the ATO website or have a chat to your accountant.
The information on this website is provided for general information only and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from financial, legal and taxation advisers. Although every effort has been made to verify the accuracy of the information, we disclaim all liability (except for any liability which by law cannot be excluded), for any error, inaccuracy, or omission from the information or any loss or damage suffered by any person directly or indirectly through relying on this information.