The New $20,000 Small Business deduction allowance

 In Classified Ads, DVG News
The Government will provide small businesses with an immediate deduction for all individual assets costing less than $20,000!

All small businesses will now get an immediate tax deduction for every asset they buy costing less than $20,000. Previously, the threshold has sat at $1,000.

This $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they like.

These arrangements are currently in place and continue until the end of June 2017.

Increasing the depreciation threshold will mean improved cash flow for small businesses. The government hope it will encourage small businesses to bring forward investment in the assets they need to grow their business and service their customers.

The new small business deduction allowance threshold will also mean small businesses spend less time tracking assets across years for tax purposes. This cuts red tape and allows business owners to focus on running and growing their business.

Any assets over $20,000 can be added together (‘pooled’) and depreciated at the same rate. These assets are depreciated at 15 per cent in the first income year, and 30 per cent per year thereafter.

If the value of the pool is below $20,000 until the end of June 2017 it can be immediately deducted too.

This temporary jump in the threshold will support small businesses to invest in new assets which will help them grow and prosper into the future. For more information, please visit the Australian Government’s Budget 2015 website.

See our stock that suits Small Business owners looking to take advantage of the New $20,000 Small Business deduction allowance HERE

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