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How To Unlock A $20,000 Tax Deduction

Business Informent for Australian Customers 

Australian Customers: How To Unlock A $20,000 Tax Deduction

Invest $20k & "Instantly" Claim It Back

As the end of financial year approaches small businesses often look to ways for legitimate tax breaks. 

The $20,000 “instant” asset write-off scheme is a little ripper. Knowns as the end of financial year instant asset tax write-off it means you may be able to buy equipment for your business up to $20,000. 

You may then claim it immediately as a deduction.

instand tax write off image attribution smart company

A survey by Officeworks and H&R Block as reported in Smart Company discovered that more than 60% of businesses aren't fully utilizing it due to a lack of knowledge about the scheme and a lack of funds available. 

For Australian small businesses this is an opportunity to purchase work-related equipment and write it off in one go. 

Rather than having to depreciated it across a number of years.

This scheme enables companies to invest in business assets, such as new laser tag equipment, valued up to $20,000 and decrease their taxable income by the same amount. (Okay, okay it doesn't HAVE to be laser tag equipment!!). Assets can include:

  • Work vehicles
  • Tradie tools and machinery
  • IT hardware (desktop computers, printers, photocopiers)
  • Office, studio and shop furniture and fitting
  • Equipment storage (sheds and storage containers)
  • Kitchen equipment
  • Signage
  • Air conditioners
  • Other items (speak to your accountant as to what is elgible)> 


Who's Eligible?

If your business has a turnover of less than $10 million per annum then you can claim the $20,000 tax deduction. 

But the invoice needs to be dated before June 30th 2018 for you to submit your tax return for the 2017-2018 financial year in July or shortly thereafter. Check with your local Accountant to see if this $20,000 kick-back is right for your business. 

Where to Get The Funds?

While some businesses might be able to fund the new asset purchase most small businesses will need financing so the investment doesn't impact on day-to-day cash flow. Many small businesses have worked with Flexirent to secure a loan for the purchase of new laser tag equipment. 

MYOB now also offers a finance service called Ondeck so MYOB customers can apply for loans starting at $10,000. 

If you are a battlefield operator who is considering investing in new laser tag equipment then it might be worthwhile investigating the $20,000 tax write off before the end of financial year. 

News Source & Image Attribution : Smart Company