Good news! The Morrison Government’s 2019 Federal Budget is providing small and medium sized businesses with a much needed stimulus by extending the instant asset write-off initiative. If you haven’t heard of this yet, don’t worry, you’re not alone! Research by American Express has revealed almost half of all small business owners are unaware of this incentive that could be a great financial help for them…
If you’re interested to know how the instant asset write-off can benefit your business, read on for the rundown:
What is the Instant Asset Write-Off?
As of 2nd April this year, if you have an annual turnover less than $50 million, your business can claim deductions on new tools and office equipment, covering purchases under $30,000. This threshold applies to both new and second hand purchases. To find out thresholds prior to 2nd April 2019, see here.
The $30,000 threshold applies per asset, so you can instantly write-off multiple items, saving your business thousands of dollars, and all the while improving efficiencies with the installation of new equipment. The government’s scheme is designed to ease pressure off your business’s cash flow and to leave you with room for any expansion plans.
While, the initiative has been around since 2015, it’s only valid until 30th June 2020. So there’s no time to waste! Take advantage of the current instant asset write-offs before the 2019 financial year is over soon!
How Can I Claim My Business Purchases?
If you buy an asset that comes under the $30,000 threshold, you can claim the business portion of the asset’s use in your tax return for the 2018-19 financial year.
If your business is structured as a partnership, be wary that any purchases are considered as being owned by the partnership and not by the individual partners so you can’t under any circumstances double up. If you’re unsure about what you’re entitled to claim, visit the Australian Taxation Office website or speak to a qualified tax professional.
What Type of Purchases Should I Consider Making?
If you decided to take advantage of the instant asset write-off, now is a better time than ever to upgrade your warehouse or office with a complete fitout. There are several benefits of updating your office furniture and warehouse equipment which include:
- • Enhancing productivity & efficiency
Many Businesses use the write off to improve their productivity with new systems which enhance accessibility and organise stock.
- • Improving workplace safety
Investing in safety equipment such as materials handling tools for your warehouse or ergonomic seating in your office helps improve the health and quality of life for your employees as they perform day-to-day tasks.
- • Boosting employee satisfaction
Boosting employee satisfaction and pride in the workplace is a growing priority for business owners and with so many smart new office furniture options an office facelift is always a solid investment.
- • Saving money with quality long-term equipment investments
As far as we know, the instant asset write off for purchases under $30,000 is only valid until EOFY 2020, so take the opportunity while you can to invest in the future and start the new financial year on the right foot!
Start a wish list of your top tax-incentive products for your business! At All Storage Systems, we offer complete office & warehouse design services, from auditing and layout planning to complete supply and installation.
Contact our sales team on 1800 772 726 or firstname.lastname@example.org for advice or book an audit and organise a FREE fitout consultation.