There has been a bit of confusion surrounding the newly announced immediate asset write-off for assets costing less than $20,000 for small businesses, since the release of this year’s federal budget.
The following blog, by Taxpayers Australia, we found, laid to rest many of the frequently asked questions that arose from this announcement. These included:
- How does the deduction work?
- What constitutes a ‘small business’?
- Is the $20,000 threshold inclusive or exclusive of GST?
- When can I claim a deduction?
- How do the rules work with vehicle trade-ins?
- What happens if the asset is used for both business and private use?
- Can a deduction be claimed for second hand assets?; and
- What are the consequences if the law is not enacted?
If this sounds like something you’ve been wondering about or you are a small business take a look at this post. Alternatively, if reading is not your thing, we highly recommend the following Taxpayers Australia podcast to give you a clearer picture as to what this write-off entitles.