Instant Asset Write Offs – Taxation Deduction Extensions for Business

The ATO is allowing instant asset write offs – taxation deduction extensions for business.  The countdown is on until the end of the financial year, but did you know that you might have until the end of July to close off your financial year, check with your accountant?

SME’s also now have an extra 12 months to claim the full value of new depreciable assets.  Allowing almost all Australians to immediately write off the full value of all new assets, without limited on the value of individual purchases.  The scheme was due to expire on 30 June 2022, it will now continue until 30 June 2023.

What does the Instant Asset Write Offs allow my business to do?

 If you’re an Australian business with an annual turnover of $5 billion or less you can:

• Claim the full value of all new eligible depreciable assets of any value that are first used or installed before June 30, 2023.
• Claim full deductions for the cost of improvements made to existing depreciable assets.
• SMEs with up to $50 million in annual revenue will also be able to immediately claim a full deduction on all second hand purchases.

The scheme essentially allows businesses to claim a tax deduction for the full value of a purchase after its use, rather than claim depreciation amounts over several years.

The aim is to get businesses to bring forward spending on new assets by allowing them to claim the full tax deduction upfront, and thereby reducing the amount of tax they pay.

Here are some expenses that might help you increase your Taxation Deductions

 Services Reports

• Asbestos Management Plan Compliance
• Public Liability Safety Audits & Compliance
• Fire Protection System Reports & Plans
• HVAC Assessment Reports & Compliance

  

Commercial Property Safety Products

• Bollards
• Wheel Stops
• Rubbish bins
• Speed Humps

Things To Remember

•  Don’t get into unmanageable debt just for an extra tax write-off.
• ALWAYS consult your tax agent before making tax-related business purchases.
• Keep clear records throughout the financial year, so you don’t miss any key financials.
• Keep all tax invoices and categorise them accordingly.
• Be prepared to show definitive evidence in case you might be asked for proof of expenses.