The Federal Government announced on the 12th of May a number of Financial measures in an attempt to get the economy moving and one of these related to a $20000 Tax deduction for small business.
But how does it work and who is eligible?
WHO CAN QUALIFY?
Any small business or sole trader that has an ABN ( Australian Business Number ) , as long as their Annual Turnover is less than $2 million is eligible to the Tax Deduction. You can apply for an ABN on the Government Website which is a very easy process.
WHAT CAN BE PURCHASED?
You can purchase any item that is related to your business. This could be a new or used car, plant and equipment, power tools, a fridge or any item that could be claimed as a Business Tax Deduction and the goods do not have to be new
HOW MANY ITEMS CAN I BUY?
You can claim as many products under $20000 as you want to, there is no limit.
ARE THERE ANY RULES AROUND MY PURCHASE?
The item must be related to your business.
WHAT HAPPENS IF I BUY SOMETHING OVER $20000, CAN I STILL CLAIM A DEDUCTION?
Yes , you can claim any item over $20000 as it can be added together and depreciated at the same rate. The goods are depreciated at 15% in the first year and 30% per year after that.
WHAT CAN I NOT CLAIM?
Items you wish to purchase and claim must be physical items. Stock, software or marketing costs are not permitted.
HOW LONG HAVE I GOT TO PURCHASE AN ITEM?
The $20000 tax deduction started on the 12th of May and goes through to the 30th of June 2017. It is then scheduled to go back to the original $1000 threshold after that time.
So, if you are looking at buying a car or anything else relating to a business loan, call Saveonboatloans.com.au and discuss your Financial needs with our expert staff who will be more than happy answer any questions you have relating to this great opportunity.
Call us now on 1300 000 326.