The $20,000 instant asset write-off has now been extended to 30 June 2018, meaning that small businesses can continue to claim an immediate tax deduction for new assets under $20,000.
What can you claim an instant deduction for?
Generally, the deduction is primarily intended for physical assets.
Equipment, vehicles, tools and electronics (such as computers and phones) can all be claimed as part of the scheme.
There is also no limit to how many assets you can claim the deduction for. However, each one must cost less than $20,000.
It’s important to note that the deduction only applies to assets used for business purposes. If an asset – for example a computer – is split between personal and business use, you can only claim the deduction on the portion that is used for business.
There has been some confusing advertising by retailers around these claims, so we recommend if you are considering taking advantage of it, to please contact our team first via email or by calling us on (02) 4455 5333.
Related Link – My Business… the $20,000 instant asset write-off explained