The 2015 Federal budget handed down on Tuesday has introduced reforms targeted at improving cash flow for small business.
Effective immediately, all small businesses will get an immediate tax deduction for any individual asset they buy costing less than $20,000. (Currently the threshold is $1000)
The $20,000 limit applies to each individual item and can be applied to as many individual items as they wish.
Increasing the depreciation threshold is designed to encourage businesses to bring forward investment in the assets they need to grow their business and service their customers.
Do you need new equipment NOW but don’t have the cash and want to take advantage of new rules?
Finance allows you to acquire the equipment you need now to get your immediate tax deduction but spreads your payments over a number of years.
There has never been a better time to upgrade your equipment. Visit my website for details of the different types of equipment we can finance.
Contact our office for more information.
Note that this is a general information bulletin and we recommend that you contact your tax agent to discuss how these changes affect your business. Additional information can be found on the government Budget 2015 website. Click here for details.