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Depreciation deductions up to $6,500 still available
Small businesses shouldn’t forget to claim for depreciation – getting a deduction for the loss of value and wear and tear on the business’ assets. Assets usually have to be depreciated bit by bit over several years, but special rules for small businesses mean that they can get an immediate tax write off for any asset with a value of up to $6,500. For example, if your business bought a $4,000 computer in the current tax year, the business could claim an immediate 100 per cent tax deduction when you do your tax return.
That said, the federal government has signalled that it wants to drop the limit back down to $1,000, so if you’re planning to buy any assets for your business, consider making the purchase before June 30 while you can still take advantage of the $6,500 cap. Now might be the perfect time to upgrade some of your smaller assets and office equipment.