Do you have a small business that earns less than 10 million dollars? You can be putting more money back into your pocket! This year, the government is showing support for small businesses by giving them a tax break. The good news is that you’re eligible to write-off assets that you have purchased for use within your business.

According to the Australian Taxation Office, businesses are entitled to claim up to $20,000 for each asset purchased during the 2017/2018 financial year. However, it is important to note that simplified depreciation rules need to be applied.

Under these rules, businesses can:

• Immediately write-off most depreciating assets that cost less than $20,000 each, that were bought and used, or installed for use from the 12th May 2015 until 30th June 2018.

• Pool most other depreciating assets that cost $20,000 or more in a small business asset pool and claim:

• a 15% deduction in the first year

• a 30% deduction each year after the first year

• write-off the balance of your small business pool at the end of an income year if the balance, before applying any other depreciation, is less than $20,000.

This means that you can use the $20,000 instant asset write-off multiple times! Just keep in mind that the cost of each item must be under the threshold and can include items that you have purchased second-hand.

To discuss your businesses eligibility or for further advice about claiming the instant asset write-off, please contact the team at Vertigan Partners on 6424 4021.