Tax Planning Opportunity

TIMING IS EVERYTHING AND IT’S BEST RIGHT NOW

For businesses that qualify as Small Business Entities (SBE’s) they must have turnover below certain levels to access SBE concessions. In the case of the SBE simplified depreciation rules including the ability to claim an immediate deduction, the turnover must be below $10million.

Under the recent changes to the SBE instant asset write-off, a threshold of $20,000, $25,000 or $30,000 will apply for the 2019 income year. The applicable threshold varies depending on when the asset is first used or installed ready for use during the income year as follows:

For assets first used or installed ready for use between 1 July 2018 and 28 January 2019 – the instant asset write-off threshold is $20,000.

For assets first used or installed ready for use on or after 29 January 2019 and before 7:30 pm (AEDT) on 2 April 2019 – the instant asset write-off threshold is $25,000.

For assets first used or installed ready for use after 7:30 pm (AEDT) on 2 April 2019 and by 30 June 2019 – the instant asset write-off threshold is $30,000.

This immediate write-off threshold of less than $30,000 will cease on 30 June 2020.

There are many rules and complexities in determining if a taxpayer will qualify for these concessions.

Please don’t hesitate to contact us if you wish to discuss.

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