There is no better time for small business customers to invest in the tools that will help them to achieve their big ideas.
Government announced an extension to the 2015-16 Budget measure providing an instant asset write-off provision for small businesses.
New laws have passed that allow small businesses to claim an immediate deduction for assets they start to use – or have installed ready for use – provided each depreciable asset costs less than $20,000. This will temporarily replace the previous instant asset write-off threshold of $1,000.
This measure starts 7.30pm (AEST) 12 May 2015 and will end on 30 June 2017.
The balance of the general small business pool is also immediately deducted if the balance is less than $20,000 at the end of an income year that ends on or after 12 May 2015 and on or before 30 June 2017 (including existing general small business pool).
The current ‘lock out’ laws will also be suspended for the simplified depreciation rules (these prevent small businesses from re-entering the simplified depreciation regime for five years if they have opted out) until the end of 30 June 2017.
Assets excluded from these depreciation rules include horticultural plants and in-house software allocated to a software development pool. In most cases specific depreciation rules apply to these excluded assets.
Assets that cost $20,000 or more (which can’t be immediately deducted under other provisions) are deducted over time using the general small business pool. Under the pooling mechanism a deduction for 15 per cent of the cost is allowed in the first income year with a diminishing value rate of 30 per cent deduction on the opening pool balance allowed for each income year thereafter. This includes the purchase of a business phone system.
It’ll be extremely tax effective for small businesses to purchase phone systems before end of this financial year.
With the End of Financial Year fast approaching, small business customers should look to take advantage of this tax deduction scheme and purchase Panasonic Phone systems before 30th of June 2017. You can also look at upgrading the phone system to Panasonic KX-NS700/1000 this financial year and claim immediate tax deduction.
Information gained from the ATO website.
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