Instant Asset Write Off – take advantage of it now
The $20,000 Instant Asset Write Off – you will have heard about this as it’s been around for a while, and it’s been extended to 30th June 2018. That means if you buy an asset than costs less than $20,000 you can immediately claim the full deduction rather than expensing it over a set number of years.
You are eligible for the instant asset write off if:
- You have a turnover less than $10 million, and
- The asset was first used or installed ready for use by 30/06/2018.
So if you were putting off purchasing some equipment for your business that costs less than $20,000 you could consider purchasing before 30 June. Remember though that to be eligible the item needs to be used or ready to use by 30/06/2018 so if you place an order for something and it doesn’t arrive in time or only part of it arrives (therefore not ‘ready’ to use), then you will not be eligible for this write off.
By taking advantage of the instant asset write off, not only will you have the tax benefits of this year, you’ll also have some new equipment that can be put to use and possibly earning you money immediately into the new financial year.
Making a large purchase like this should never be done as a spur of the moment decision and should always be made with some forethought and for the purpose of benefiting your business. Please have a discussion with your accountant to ensure the purchase you’re considering will have the best outcome for your business.