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5 Fun Facts About The $20k Instant Tax Write-Off

In May, the Federal Government renewed its commitment to allowing small businesses to receive an instant tax write-off for capital assets costing up to $20,000.

The following five facts might help you decide whether you want to take advantage of the asset write-off before 30 June.

  1. It’s a great opportunity for small business owners to purchase capital business items worth up to $20,000 and claim an immediate tax deduction. Cars, laptops, and even coffee machines count. 
  2. The deduction threshold is per item. This means you can buy multiple items as long as each item is less than $20,000, net of (minus) GST. 
  3. Be careful if you buy a number of items less than $20,000. When combined, they might make up one item worth more than $20,000. These purchases may, all together, not qualify for the immediate write-off.
  4. Buying a $20,000 item will not ensure you receive $20,000 back in tax. Most people can expect to receive 30c tax benefit for every $1 they spend.
  5. The asset can be new or second hand. You can pay for it in cash by or using credit to pay off later – as long as it is available for use in your business by 30 June, 2019.

Do you want to discuss a capital purchase leading up to 30 June? Call us on 07 3359 5244 or email 

Find out more if you’re a tradie looking to get the most out of your tax return.

Need friendly advice? Talk to our staff today about how we can help your business succeed.

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