How to make the most out of the $20,000 small business tax deduction.
Who can get it?
All small businesses with a turnover of less than $2 million (whether a company or sole trader) are eligible to claim an immediate tax deduction for all assets they buy that are less than $20,000 each. There is no limit to the number of items under $20,000 that can be claimed.
When does it apply from?
It applies for purchases made from 7.30pm May 12th 2015 until 30 June 2017
What can I purchase?
All items used in your business. This includes ovens, refrigerators, dishwashers, countertop appliances, storage equipment and accessories.
Does it apply to second hand items?
Yes the rules apply to both new and second hand items.
What happens if the item is over $20,000?
Any items over $20,000 can be added together and depreciated at the same rate – which is 15% in the first year and 30% per year from the second year onwards.
Are there any other tax benefits on offer for small businesses?
Small companies will also benefit from a lower tax rate of 28.5% – a reduction of 1.5%.
DHT Solutions is based in Melbourne and has been supplying refrigeration and catering equipment nationally – including second hand refrigeration, we have over 15 years industry experience. Our delivery network allows us to service not only Melbourne, but Sydney, Canberra, Brisbane, Adelaide and other areas upon request.