Instant asset “write off” extended for 12 more months
3 key thoughts
The $20,000 small business instant write off has been extended for another 12 months.
Businesses with an aggregated turnover of less than $10 million will be able to take advantage of the write off until 30th June 2019 provided what you buy will be acquired, installed and or used in your business.
One – when buying a vehicle, you may make a point of buying something under $20k. There are a lot of vehicles that are quality second hand (and some new that could serve your purpose) and you get a 100% write off immediately.
Two – If you don’t need something – then you don’t need it, no matter how good it sounds. You still actually need to have the money, either from the business or you borrowed it or introduce the funds to pay for the asset. If you don’t need it, isn’t it better you keep the money?
Three – Have a perspective of what you are doing and why to take advantage of the tax write off. You should always buy assets that fit in within your business plan. Paying say $18,000.00 to recover $4950.00 in tax is fine as long as it is part of your business growth and planning.
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