Extension of Instant asset write-off period for Small & Medium Size Business
The budget provides for a 12 month extension of the SME instant expense write-off which at least gives business a bit more incentive to purchase new equipment. As in the 2017 tax year you are eligible to claim a deduction for the business portion of each asset (new or second hand) costing less than $20,000 if:
- You had a turnover less than $10 million in the prior income year and;
- The asset was first used or installed ready for use in the 2017-18 income year.
The budget further indicates that subsequent budgets will see a return to the previous write-off limit of $1,000 so that may be worth considering in your future expenditure planning.
Obviously your accountant or adviser can clarify any grey areas that may arise but it does at least give us some encouragement that the government is attempting to assist the large SME business population of our country.