The Weekly Advertiser

TAX TIME: Instant asset write-off for business

Horsham business owners Tim Stanton, Adrian Wade, Michael Baulman and Tristan Wessling remind people that tax refunds are available on business related expenses.

Horsham business owners Tim Stanton, Adrian Wade, Michael Baulman and Tristan Wessling remind people that tax refunds are available on business related expenses.

A Horsham businessman has encouraged Wimmera and Mallee business owners to make the most of a tax write-off by June 30.
Harvey Norman Horsham computer proprietor Michael Baulman said small businesses could benefit from a $20,000 instant asset write-off.
People who buy an asset by June 30 that costs less than $20,000, can write off the business portion in their 2018 tax return.
The buyer is eligible to use simplified depreciation rules and claim an immediate deduction for the business portion of each asset – new or second-hand – costing less than $20,000 if:
• They have a turnover less than $10-million, increased from $2-million on July 1, 2016, and
• The asset was first used or installed ready for use in the income year they are claiming it in.
“I’ve been talking to a lot of people who don’t realise this scheme is available,” Mr Baulman said.
“Around tax time a lot of people start to think maybe they should buy a computer or a mobile phone, but this scheme would suit a wide range of items, such as perhaps tools and furniture. We have a lot of farmers in our region and some are no doubt doing it tough.
“They might be able to buy a new fridge and furniture for a work room or something.
“In some cases, we could be talking about tax deductions of 30 percent.
“I’m not a tax expert so people will have to check what they can claim, but I want to raise awareness that it’s available.”
Mr Baulman moved to Horsham in December.
“I came from a city area, south-west of Sydney, and Horsham is obviously a lot smaller, with a lot less people,” he said.
“I want to do what I can to help the town.
“Anything we can do to let people know they can save some money is a good thing.”
Assets that cost $20,000 or more cannot be immediately deducted.
They will continue to be deducted over time using the general small business pool.
A person can write off the balance of this pool if the balance – before applying any other depreciation deduction – is less than $20,000 at the end of an income year.
The $20,000 threshold applied from May 12, 2015 and will reduce to $1000 from July 1, 2018.
In the latest Federal Budget, there is a proposal to extend the $20,000 instant asset write-off threshold to June 30, 2019. This change is not law yet.
Registered tax agents and BAS agents can help people with their tax.

The entire June 20, 2018 edition of The Weekly Advertiser is available online. READ IT HERE!

Short URL: http://www.theweeklyadvertiser.com.au/?p=62454

Posted on Jun 20 2018

Posted by on Jun 20 2018. Filed under Finance, Finance advice. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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