Instant asset write-off increased to $30,000

12 June 2019Accountants & Advisors, Accounting, Expense Management, Hospitality & Retail, Improved Cashflow, Manufacturing

40,000 employers have commenced Single Touch Payroll reporting. Whilst this represents the majority of businesses with 20 or more staff, it still leaves a large number yet to meet their compliance obligations.

Thinking of purchasing equipment for your medium business? Now is the perfect time.

The instant asset write-off threshold for any business with a turnover less than $50 million has been increased to $30,000 and extended to 30 June 2020.

From 1 July 2020, the threshold will revert to $1,000.

This makes now the perfect time to receive major savings on your tax bill whilst investing in assets that can help improve your medium business.

How does it work?

Using simplified depreciation rules, assets costing less than $30,000 – new or used – are written off in the year they are first used, or installed ready-for-use, rather than over time. The entire cost of the asset must be less than $30,000, irrespective of any trade-in amount, and purchased after 7:30pm (AEDT) 2 April 2019 (for assets purchased earlier, lower thresholds exist). You may purchase and claim a deduction for multiple assets provided each asset is under $30,000.

Visit the ATO website to learn more.

Time to upgrade your business software?

Are you running old business software on outdated computer hardware? Why not take advantage of the instant asset write-off to upgrade your PCs and servers. You can then reap the business improvement benefits of using the latest payroll and accounting software. Take an Attaché product tour now.

Talk to a specialist

To enquire about any Attaché product, including our Single Touch Payroll and payday filing solutions, contact us.

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