Small business, with an annual turnover of M$2 or less, have now been given the opportunity to instantly write-off assets up to $20,000.
This means purchases made up to $20,000 can be immediately written-off. Meaning you don’t have to wait and claim those purchases over several years.
The Federal budget allocated is M$1.75 to fund this scheme.
To be eligible you must be actively trading.
Assets up to $20,000, involved in running a business can be claimed. Items such as kitchens, kitchen equipment, cars, vans, and tradies’ tools.
Asset over $20,000 are ineligible.
In addition to this write off, companies with a turnover less than M$2 will have their tax lowered from 30% to 28.5%. A saving of 1.5%.
Sole traders, partnerships and trusts, will also receive a 5% tax discount from July 1 (up to $1000 per year).
[Refer: ABC News]