July 9, 2015

Tax Law Changes for Small Business, Instant Asset Write Off Of $20,000

If you are thinking about upgrading your hardware, now is definitely the time! New tax laws have passed that allow small businesses to claim an immediate deduction on depreciable assets that cost less than $20,000. This will temporarily replace the previous instant asset write-off threshold of $1,000.

This measure commences 7.30pm (AEST) 12 May 2015 and will cease on 30 June 2017.

Any business with an annual turnover under $2 million can claim the immediate tax deductions on multiple purchases of less than $20,000, rather than having to claim those purchases as deductions spread over several years. Any assets used in the running of a business are eligible for this scheme. This includes hardware such as servers and computers to software such as account programs.

This boost for small business means now is the time to upgrade equipment. Be sure to balance your current needs with those of future growth potential.

Here are a few tips to remember when you upgrade your hardware or software. Remember to think about future storage needs. If you invest in more devices will you need more storage requirements to ensure everything is backed up properly? It is also important to remember that new software can often mean upgrades to your current computers or purchasing new computers.

These changes are meant to foster small business growth and it is important to spend wisely. There a variety of options and prices on equipment. Feel free to check with us for competitive quotes on anything you are considering purchasing. If you have any questions or concerns about the best way forward for your business, do not hesitate to get in touch!


Julie Dunmore

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