May 8, 2018
Federal Budget 2018: $20,000 wish granted
The $20,000 instant asset write-off is extended for another year, which is great news for small businesses.
Tonight Treasurer Scott Morrison announced this popular scheme is continuing, which gives business turning over less than $10 million to instantly write-off specified equipment valued below $20,000.
The policy was due to end on 1 July this year, but it’s now pencilled in to last until 1 July 2019.
“The government’s decision to extend the $20K instant asset tax write-off is welcome news for SMEs,” MYOB CEO Tim Reed said.
“It encourages business growth and is exactly the type of measure that delivers confidence to the business community.”
It’s a policy close to the hearts of Australian small businesses, with MYOB’s most recent snapshot confirming it’s the most requested measure in this year’s budget.
A whopping seven out of 10 small business owners interviewed said the policy should be made a permanent feature of the tax landscape.
So now the policy has been extended, how can you best use the opportunity presented?
How to use the opportunity
The scheme allows businesses with less than $10 million in annual turnover to immediately write-off the value of new assets worth less than $20,000.
There’s no waiting for depreciation to kick in over several years.
Some of the types of assets you can get include:
- IT hardware such as computers, printers, scanners, photocopiers
- office or shop fittings and furniture
- work vehicles, like a new ute
- sheds or containers for storing equipment
- tools and machinery
- plant and equipment