May 24, 2022

Small Business Can Still Deduct Assets Under $20,000

Last year the government announced an instant tax write off of $20,000 for small businesses. This deduction is still valid this tax year and ends June 30 2017. If you don’t need any major equipment purchases this year, there is always next year to consider.

Unsure of wether you are a small business? The ATO defines a small business as a business that has an “aggregated turnover” of less than $2 million.  This definition can be quite complex in certain situations, so be sure to consult your accountant to be sure of your standing.

It is also important to note that the $20,000 amount should be the GST exclusive value.  Again check with your accountant, to understand how your GST standing may affect what you can claim on the deduction.

According to the ATO website the rules for the deduction apply to –

  • to assets acquired after 7.30pm on 12 May 2015 until 30 June 2017,
  • on a per asset basis, so several assets each costing less than $20,000 would qualify,
  • to new and second hand assets.

This deduction only applies to hardware like your computers and servers, not software or the programs you use to run your business. If your computer equipment is getting old now may be the perfect time to replace them.

Replacing your business’s computers does not have to be a stressful experience, please get in touch. While Dr. Neo isn’t an accountant, he is always happy to give advice on your technology needs!


Julie Dunmore

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