Credit: Hand writing text caption inspiration showing Tax Deductions. Business concept for Finance Incoming Tax Money Deduction written on notebook book on wooden background in the Office with laptop
The ATO are keen to remind small-business
owners to prepare for the end of financial year by making use of these small
business tax concessions.
Instant asset write-off
Business assets purchased before 30 June
may be able to be claimed as a full deduction in your 2019 tax return. The
asset must have cost less than the threshold that applied when it was first
installed and ready for use.
Using the simplified depreciation rules,
assets costing less than the relevant instant asset write-off threshold are
written off in the year they are first used, or installed ready-for-use. This
threshold applies to each asset irrespective of whether the asset is purchased
new or second-hand.
The threshold has changed over the last
few years and during the current year as shown in the table below.
Threshold for each asset
7:30pm 02/04/2019 to 30/06/2020
29/01/2019 to before 7.30pm 02/04/2019
7.30pm 12/05/2015 to 28/01/2019
01/01/2014 to prior to 7.30pm 12/05/2015
01/07/2012 to 31/12/2013
01/07/2011 to 30/06/2012
In working out the amount you can claim,
you must subtract any private use proportion. The balance (that is the
proportion used in earning assessable income) is generally the taxable purpose
proportion. While only the taxable purpose proportion is deductible, the entire
cost of the asset must be less than the threshold.
Note that if you later sell or dispose of
an asset for which you claimed an instant asset write-off, you include the
taxable purpose proportion of the amount you received for the asset in your
Expenses such as rent, registration fees
and insurance paid before 30 June that end in the next financial year can be
claimed as a deduction in this year’s tax return.
Simplified trading stock calculation
If the estimated difference between your
opening and closing trading stock is $5,000 or less, you don’t need to do a
stocktake. Instead, you can include the same amount for your opening and
closing stock in this year’s tax return.
Accelerated depreciation for primary producers
If you’re a primary producer, you can
claim a deduction in your 2019 tax return for:
assets used to store fodder
that you bought (or first used or had installed ready for use) on or after 19