Australian Government Deducts Asset at $20,000 and Below

Australian government’s Christmas gift for small business owners was given early this year with the increase in the asset deductions threshold to $20,000 from the previous $1,000, hoping for it to support small businesses in their venture to grow.

All items needed for business’ operations under $20,000 are subjected to 100% tax write-off. So, the purchases for communication system in your enterprise, like the Avaya Phone systems, will be included in the write-off. So, visit our store and buy away without worrying about taxes! 

Exceptions for $20,000 Threshold:

• Horticultural Plant
• In-house Software

Things to Remember:

• You can’t buy stock using the write-off
• “Lock out” rules were suspended until June 30, 2017

Assets above $20,000 can be pooled together for the existing depreciation pool. They can be depreciated by 15% for first income year, then 30% after that.

This is indeed an early Christmas present that all small businesses can enjoy!