Do you want a new car, computer, tools or even an air conditioner? This June, buying equipment for your business is more worthwhile than ever before. The federal government’s instant asset write-off threshold has been increased to $30,000 and extended to 30 June 2020. Businesses with annual turnover up to $50 million (up from $10 million previously) are now eligible. Multiple purchases can be claimed. “If businesses are thinking of making a purchase, they ought to do it now,” said finance broker Robert Perks, “before end of financial year.” By making an asset purchase now, businesses can claim the cost as an immediate deduction this financial year. The instant asset write-off scheme for small business started in 2015 and was limited to small businesses with a turnover less than $2 million. The $30,000 limit has recently been lifted from $25,000 (for purchases made up to 2 April 2019) and $20,000 for purchases made before 30 January 2019. You can compare business loans from Australia’s banks, credit unions and other lenders here. Businesses are claiming new work vehicles, machinery, IT equipment, tools, office furniture, air conditioners and more, Robert Perks told Dynamic Business. Cars are a classic business acquisition covered by the instant asset write-off scheme said accountant David Fechner from BDO Business Services in Adelaide. The asset write-off scheme “certainly can make the difference between whether you are prepared to invest in expansion and growth or not,” said Mr Fechner. “As you get towards the end of the financial year, you are closer to receiving the tax benefit,” said Mr Fechner “so you get a better timing advantage.” Depreciating business assets costing more than $30,000 can’t be instantly written-off but Federal Government has also introduced the small business simplified depreciation pool for businesses with a turnover under $10 million. Businesses can place their purchased assets in the ‘pool,’ depreciate them at 15 per cent in the first year, 30 per cent in the second year and then write-off the value if the depreciated value falls to under $30,000 by 30 June 2020. The Australian Tax Office advises that all business owners claiming expenses need to keep adequate records and ensure that only business expenses are claimed. If an item or piece of equipment is partly for personal use, for example a vehicle, only the business portion can be claimed. The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser.