Central Coast Accountants

Small Business Incentives

Published on July 24, 2019 at 12:00 AM

Small business incentives, now a $30,000 immediate write off.

Do you need a tax deduction for the 2019 financial year?

Previously, I advised about year end tax planning, however we now only have two weeks before the end of the 2019 financial year.

A deduction is available for each asset that costs less than $30,000 (excluding GST), whether new or second hand.

The deduction is available for small businesses with an aggregate turnover of less than $50 million.

Firstly, it is essential that you have a sufficient cash flow to purchase an appropriate asset prior to 30 June 2019, remembering that cash flow will still be required for day to day operations, so ensure that you don’t leave the business short.

For the 2019 year, three different thresholds of deduction are available: -

1 July 2018 to 28 January 2019
The threshold is $20,000 (for businesses under $10 million turnover)

29 January 2019 to 2 April 2019
The threshold is $25,000 (for businesses under $10 million turnover)

2 April 2019 to 30 June 2019
The threshold is $30,000 (for businesses under $50 million turnover)

It might be worthwhile checking your asset purchases during the 2019 financial year, as more deductions may be available than you previously realised.

The immediate write off has been extended to 30 June 2020, however scuttlebutt says that it may be permanently legislated to become part of yearly tax deductions available.

If you need any assistance regarding these matters, time is of the essence, so please contact Michael O’Brien of Chapmans Accountants on (02) 4396 4322.