The Australian governmentโs recent budget in May 2023 unveiled some relevant and potentially helpful tax information that will affect small businesses.ย
In particular, potential new legislation around instant asset write-off. Whilst this is not yet law, the treasurer revealed that to โreduce compliance and improve cash flowโ for small businesses, it will temporarily increase the instant asset write-off threshold to $20,000 from the beginning of the next tax year โ 1stย 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 1stย July this year and the end of the tax year on 30thย June 2024, you could deduct their full costs under the $20,000 threshold, instantly. This will apply PER ASSET โ 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 theย Australian Tax Office (ATO) websiteย for more information on depreciation rules.
In this tax year โ 2022/23, you can still utilize theย instant tax write-offย for assets but do make sure you have applied for theย simplified depreciationย rules to claim.ย
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 aย pallet wrapping machineย orย 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 usย 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 โreduce compliance and improve cash flowโ for small businesses, it will temporarily increase the instant asset write-off threshold to $20,000 from the beginning of the next tax year โ 1stย 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 1stย July this year and the end of the tax year on 30thย June 2024, you could deduct their full costs under the $20,000 threshold, instantly. This will apply PER ASSET โ 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 theย Australian Tax Office (ATO) websiteย for more information on depreciation rules.
In this tax year โ 2022/23, you can still utilize theย instant tax write-offย for assets but do make sure you have applied for theย simplified depreciationย rules to claim.ย
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 aย pallet wrapping machineย orย 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 usย today to arrange a FREE consultation and assessment from one of our pallet wrapping experts.
