Business Tax Deductions

Date: 17-Jun-2019

We’re making tax time easy.

Thinking of updating the medical equipment in your practice and/or investing in new equipment to expand your practice? Perhaps you are looking to set up a new practice.

Now is the time to invest in your practice before 30th June to take advantage of the instant asset tax write-off for assets up to $30,000.

The instant asset write-off threshold has been increased to $30,000 and extended to 30 June 2020.

If you purchase an asset (new or second hand) costing less than $30,000 and it is used or installed ready for use from 7:30pm AEDT on 2 April 2019, you can claim a deduction for the business portion.

Different thresholds apply for assets purchased before that date:

  • from 29 January 2019 until before 7.30pm AEDT on 2 April 2019, the threshold is $25,000
  • before 29 January 2019, the threshold is $20,000.

You may purchase and claim a deduction for multiple assets provided each asset is under the relevant threshold.

Assets that cost $30,000 each or more can't be immediately deducted. You can continue to deduct them over time using the small business pool.

From 2 April 2019, the instant asset write-off has also been expanded to include businesses with a turnover from $10 million to less than $50 million in an income year.

Remember, registered tax agents can help you with your tax. Seek professional tax and legal advice to determine whether you are eligible to claim a deduction for any purchases.

For more information, click here to view the ATO's website.