Covered in the recent Federal Budget announcement, Australian small businesses can continue to claim an immediate 100% tax deduction on any business related purchases (including Attachments) up to $20,000.
This makes tax time exciting for once!
Who gets it?
If you are registered business, i.e. you have an ABN, and it turned over less than $10 million you can claim (was previously a $2 million threshold).
Businesses can buy any machinery or equipment related to their business if each item is valued at less than $20,000. You can claim the full amount from your income to reduce your tax bill. There is no limit on the number of items a business can claim.
What CAN I claim?
Cars, vans, utes, trailers, motorbikes, lawnmowers, ovens, fridges, coffee machines, other machinery (eg. Attachments), kitchens, tables and chairs, carpets, printers, photocopiers, tools, welding equipment, saws, generators, pumps, solar panels, heating, hot water units, water tanks, airconditioning units, sound and security systems, computers – any item used for running the business – will be 100 per cent tax deductible.
What CAN'T I claim?
You cannot use the money to buy stock for your business. Horticultural plants and in-house software also do not qualify.
When does it start and end?
The Small Business Tax Break began May 12, 2015, and has now been extended until June 30, 2019. Once ended, the limit for tax-deductible assets will return to $1,000.
Himac recommend seeking advice from your accountant for further clarification.