Is now the time to buy?
Reduction in the small business instant asset write-off threshold
On the repeal of the Minerals Resource Rent Tax, a number of tax concessions intended to be funded by the Tax will be discontinued.
Of particular interest to small businesses is the reduction of the small business instant asset write-off threshold from $6,500 to $1,000 from 1 January 2014. Note that this is subject to the ability of the government to pass the legislation!
The accelerated depreciation of motor vehicles for small businesses will also be repealed from 1 January 2014.
Under this concession small businesses can claim up to $5,000 as an immediate deduction for a motor vehicle purchased.
If you have been considering the purchase of assets in the New Year, it may be worth considering bringing forward those purchases and make them before 31 December 2013 to maximise your tax deductions, on the assuming the legislation is eventually passed with the effective start date.
If you would like assistance in considering these concessions, please do not hesitate to contact us.
Note: A business is considered to be a small business and is eligible for these concessions if they have less than $2 million aggregated turnover.
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This Newsletter, of necessity, has dealt with matters of a technical nature in general terms only. Clients should contact us for detailed information on any of the items in the Newsletter. No responsibility for loss occasioned to any person acting or refraining from acting in reliance upon any material in this Newsletter can be accepted by any member or employee of the firm.