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$20,000 Tax Break For Small Business!

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Are you a small business owner?
Now is the time to save on tools!

One of the biggest announcements of the Federal Governments 'Budget: 2015’ is the temporary increase to the instant asset write-off allowing small business to claim back purchases of up to $20,000!

What is the $20,000 tax break?

Small Businesses with an annual turnover under $2M can claim immediate tax deductions for as many purchases valued at or less than $20,000 for the next two years (from 7:30 budget night to June 30, 2017), rather than claim those purchase as deductions spread over several years.  This is a huge increase from the current instant asset write-off threshold of $1,000.  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.

Who is eligible?

The $20,000 tax break applies to actively trading businesses with an ABN that can demonstrate ongoing activity via quarterly Business Activity Statements (BAS).

What’s covered?

Any asset that’s involved in running a business is covered under the scheme.

For tradies, workshops, garages, contractors, or anyone that requires tools for work – this means you can claim immediate deductions on any assets related to your business – TOOL KITS, TOOLS, EQUIPMENT, GARAGE STORAGE, VEHICLE STORAGE, PNEUMATIC, LIFTING EQUIPMENT, and so on!  In fact, anything available within the KINCROME distributed brands and ranges is eligible for the scheme, up to the value of $20,000!  There is no limit on the number of items, only the pooled value!

If the total value of the pool is below $20,000 it can be immediately deducted, assets over the value of $20,000 are not covered but can be fully written of over a longer period.

When does it end?

The $20,000 tax break for small business has started from 7:30pm May 12, 2015 and ends June 30, 2017.

More information

For further information please consult your accountant, tax advisor or the Australian Taxation Office (ATO).

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www.kincrome.com.au/category

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www.kincrome.com.au/Category/on-promotion