How to take advantage of the $20,000 instant asset write-off
22/5/23
The Australian government’s recent budget in May 2023 unveiled some relevant and potentially helpful tax information that will affect small businesses.
In particular, potential new legislation around instant asset write-off. Whilst this is not yet law, the treasurer revealed that, to “reduce compliance and improve cash flow” for small businesses, it will temporarily increase the instant asset write-off threshold to $20,000 from the beginning of the next tax year – 1st July 2023 until 30 June 2024.
If you are a small business with an aggregated turnover of less that $10million, that means that for assets/equipment that are used or installed between 1st July this year and the end of the tax year on 30th June 2024, you could deduct their full costs under the $20,000 threshold, instantly. This will apply PER ASSET – meaning that multiple assets could potentially be written off. Assets of a higher value can still attract tax incentives, through the small business depreciation pool. Please refer to the Australian Tax Office (ATO) website for more information on depreciation rules.
In this tax year – 2022/23, you can still utilise the instant tax write off for assets but do make sure you have applied for the simplified depreciation rules to claim.
As ever, we advise you to talk to your financial adviser and thoroughly research all the information provided by the ATO before making any claims.
Are you thinking about investing in a pallet wrapping machine or packaging machinery? We have many pallet wrappers and packaging equipment available to suit different needs, with costs falling well below the $20,000 mark. This means that if you invest this tax year, you could write off the capital outlay costs completely next year.
Contact us today to arrange a FREE consultation and assessment from one of our pallet wrapping experts.
In particular, potential new legislation around instant asset write-off. Whilst this is not yet law, the treasurer revealed that, to “reduce compliance and improve cash flow” for small businesses, it will temporarily increase the instant asset write-off threshold to $20,000 from the beginning of the next tax year – 1st July 2023 until 30 June 2024.
If you are a small business with an aggregated turnover of less that $10million, that means that for assets/equipment that are used or installed between 1st July this year and the end of the tax year on 30th June 2024, you could deduct their full costs under the $20,000 threshold, instantly. This will apply PER ASSET – meaning that multiple assets could potentially be written off. Assets of a higher value can still attract tax incentives, through the small business depreciation pool. Please refer to the Australian Tax Office (ATO) website for more information on depreciation rules.
In this tax year – 2022/23, you can still utilise the instant tax write off for assets but do make sure you have applied for the simplified depreciation rules to claim.
As ever, we advise you to talk to your financial adviser and thoroughly research all the information provided by the ATO before making any claims.
Are you thinking about investing in a pallet wrapping machine or packaging machinery? We have many pallet wrappers and packaging equipment available to suit different needs, with costs falling well below the $20,000 mark. This means that if you invest this tax year, you could write off the capital outlay costs completely next year.
Contact us today to arrange a FREE consultation and assessment from one of our pallet wrapping experts.
How to take advantage of the $20,000 instant asset write-off
22/5/23
The Australian government’s recent budget in May 2023 unveiled some relevant and potentially helpful tax information that will affect small businesses.
In particular, potential new legislation around instant asset write-off. Whilst this is not yet law, the treasurer revealed that to “reduce compliance and improve cash flow” for small businesses, it will temporarily increase the instant asset write-off threshold to $20,000 from the beginning of the next tax year – 1st July 2023 until 30 June 2024.
If you are a small business with an aggregated turnover of less than $10 million, that means that for assets/equipment that are used or installed between 1st July this year and the end of the tax year on 30th June 2024, you could deduct their full costs under the $20,000 threshold, instantly. This will apply PER ASSET – meaning that multiple assets could potentially be written off. Assets of a higher value can still attract tax incentives, through the small business depreciation pool. Please refer to the Australian Tax Office (ATO) website for more information on depreciation rules.
In this tax year – 2022/23, you can still utilize the instant tax write-off for assets but do make sure you have applied for the simplified depreciation rules to claim.
As ever, we advise you to talk to your financial adviser and thoroughly research all the information provided by the ATO before making any claims.
Are you thinking about investing in a pallet wrapping machine or packaging machinery? We have many pallet wrappers and packaging equipment available to suit different needs, with costs falling well below the $20,000 mark. This means that if you invest this tax year, you could write off the capital outlay costs completely next year.
Contact us today to arrange a FREE consultation and assessment from one of our pallet wrapping experts.
In particular, potential new legislation around instant asset write-off. Whilst this is not yet law, the treasurer revealed that to “reduce compliance and improve cash flow” for small businesses, it will temporarily increase the instant asset write-off threshold to $20,000 from the beginning of the next tax year – 1st July 2023 until 30 June 2024.
If you are a small business with an aggregated turnover of less than $10 million, that means that for assets/equipment that are used or installed between 1st July this year and the end of the tax year on 30th June 2024, you could deduct their full costs under the $20,000 threshold, instantly. This will apply PER ASSET – meaning that multiple assets could potentially be written off. Assets of a higher value can still attract tax incentives, through the small business depreciation pool. Please refer to the Australian Tax Office (ATO) website for more information on depreciation rules.
In this tax year – 2022/23, you can still utilize the instant tax write-off for assets but do make sure you have applied for the simplified depreciation rules to claim.
As ever, we advise you to talk to your financial adviser and thoroughly research all the information provided by the ATO before making any claims.
Are you thinking about investing in a pallet wrapping machine or packaging machinery? We have many pallet wrappers and packaging equipment available to suit different needs, with costs falling well below the $20,000 mark. This means that if you invest this tax year, you could write off the capital outlay costs completely next year.
Contact us today to arrange a FREE consultation and assessment from one of our pallet wrapping experts.