The annual Federal Budget can turn most people off very quickly (myself included) but every now and then there is a little golden nugget and the announcement by Scott Morrison earlier this month that the instant asset write-off scheme has been extended to small businesses who have annual turnover of up to $10million was one such nugget.
As with most Treasury releases there is loads of data, and ‘verbage’, and our motto at 3E is that we speak in plain English to all our stakeholders (see my previous Blog from 22nd February – I don’t use the “F word”).
Bearing that in mind the following is a snapshot (in English) of what it means;
- Currently available for businesses with annual turnover up to $2million
- From 1st July 2016 includes businesses with annual turnover up to $10million
- Expiry date retains unchanged at 30th June 2017
- Depreciable assets costing up to $20,000 each can be deducted in full
- No limit on the number of assets
- Covers vast majority of business assets (including off-the-shelf software)
- Deduction is claimed in the tax year in which the asset is first used or installed
Ok, that’s all clear Brian, but how could it benefit my business?
- Improved cashflow
- You don’t have to pay for the asset in full upfront
Only two major benefits? That is true but they are fantastic benefits! As all of us who have owned/ran/worked in small businesses know, cash is still king and any help which we can get to improve our cashflow is a huge positive in my view.
3E have appropriate Payment Solutions to enable you to spread the cost of the asset over a period of (up to) 5 years.
To find out more feel free to contact myself or any member of our experienced team.
Finally, good luck to all of you in successfully closing deals in this financial year.
Author – Brian Swan – “challenging the status quo for the benefit of our clients and partners”