Small Business Changes

The May 2019 Federal Budget brought some helpful changes for small business with turnovers under $2M per annum. It was since extended to those with aggregate turnovers of under $10M. For businesses with turnovers over $10M but under $50M the $30,000 instant asset deduction applies for assets acquired and first used after 2 April 2019 but before 30 June 2020. See the ATO link at https://www.ato.gov.au/Tax-professionals/Newsroom/Your-practice/Instant-asset-write-off-increased-and-extended/

The most popular has been the $30,000 (up from $20,000 and $25,000) depreciable asset purchases made prior to 30th June 2019. It has some twists which need to be considered, particularly if the small business is registered for GST, or the small business acquires assets under finance arrangements. Call for a specific answer that meets your business needs.