Published on Jun 4, 2018
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EOFY Bonuses – $20,000 Instant Asset Write-Off
Research undertaken by Officeworks and H&R Block suggests up to two thirds of businesses are not utilising the advantage of the $20,000 Instant Asset Write-Off bonus.
The deduction, which is primarily intended for physical assets which can include equipment, tools and electronics (such as computers and phones) and even your company vehicles can all be claimed as part of the scheme as long as each asset costs less than $20,000.
Don’t put the write-off opportunity in the ‘too-hard basket’.
“The $20,000 write-off no doubt motivates some small business owners to think about upgrading or purchasing new assets,” says Kerry Hallett of the Hunter Valley Business Hub at Kurri Kurri.
Ms Hallett said it was prudent to seek advice before making any significant purchase decisions.
“A $20,000 instant deduction is a great headline, but the details of the tax code do not necessarily make for thrilling reading,” Ms Hallett said.
“Some business owners may be mistaken in their interpretation of how the deduction can work for them – for instance it is not a dollar-for-dollar deduction.
“Spending a bit of time up front speaking with a business advisor can save a lot of hassle, not to mention money, in the long run.”
How does the $20,000 Instant Asset Write-Off work?
Before end of financial year, by June 30, you can take advantage of the $20,000 Instant Asset Write-Off and reduce your taxable income by the same amount.
Purchase the things that your business needs including office equipment, tools of your trade or business assets or fit outs totalling less than $20,000, and you can take advantage of the instant deduction.
Help is at Hand
Business advice is available to support businesses considering taking advantage of the $20,000 instant deduction before June 30 2018.
You may be entitled to free business advisory on any issue impacting your business thanks to the NSW Government’s Business Connect Program. Register online or call 1300 134 359 to connect with your local Business Connect advisor.
For specific advice on taxation it may also be best to see your Registered Tax Agent and confirm that your approach meets your individual needs.
The Australian Taxation Office also provides a range of on-line tools and support. Visit the ATO website for more information about the $20,000 instant deduction.
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