Instant Asset Write-Off – Get in before 30 June
In this low interest rate environment, there has rarely been a more favourable time to invest in your business by purchasing machinery/plant/equipment. If you are a small business (aggregated turnover of less than $2 million) contemplating buying machinery/plant/equipment, be aware that these are final months of the $20,000 instant asset write-off. With a sunset date of 30 June 2017, small businesses may wish to start considering bringing forward any planned asset investments to the next few months – particularly in this current low interest-rate environment.
By way of background, the instant asset write-off allows small businesses to totally write-off (claim a deduction in full) in the year of purchase and installation of almost all depreciable plant and equipment that they use in their business. By bringing forward the deduction to the year of purchase and installation rather than depreciating the asset over several years, your business will receive some quick tax relief.