Budget 2015: Tax bonus for small businesses13 May 2015
Starting from the announcement of the Budget, small businesses will now benefit from accelerated depreciation on their individual assets that cost less than $20,000 (this was previously only $1,000). This means that you can immediately claim a tax deduction on all those assets under $20,000. “If you’re a tradie, it might be new tools or a computer for the home office”, said Joe Hockey.
Even better news is that this $20,000 limit is per item, so you can apply this rule to as many items as you like. According to the Government, the plan is to improve cash flow for your business and to help encourage you to invest in the assets you need now, so that you can grow your business and better serve your customers.
This means that you can invest more in the things that you need to get the job done, and spend less time keeping track of your assets across years for tax purposes. Check out the great deals in our Tool Envy promotion and take advantage of this tax deduction announcement.
For more information on the changes and what they mean for you, visit the Australian Government's website here.
Additional source: Sydney Morning Herald
Before acting on any of the key outcomes from the 2015 Federal Budget, we recommend seeking out professional advice.