Time is Ticking for the $20,000 Immediate Write-Off

The $20,000 immediate write-off was introduced in the May 2015 budget, to give “small” businesses an immediate tax deduction on the purchase of most assets (eg cars, equipment, etc) where the cost of each item is below the $20,000 threshold.

The concession has had a good run and is due to finish on 30th June 2017, so small businesses have a window of opportunity before then to purchase assets and claim an immediate tax deduction.

This concession has only been available to “small businesses” which until 30th June 2016 meant businesses with a turnover under $2m. However, the announcement in the 2016 Federal Budget to expand the definition of a small business to businesses with a turnover under $10m has significantly broadened the scope for larger businesses to take advantage of this concession, albeit in the short run to 30th June 2017.

Talk to your RDL advisor about how you can benefit from this concession.

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