ATO advises on $20,000 asset deductibility
The ATO has published guidance on the Government’s proposal to allow small business to immediately deduct each asset that costs less than $20,000.
While legislation to nail the proposal hasn’t yet been enacted, Deputy Commissioner Steve Vesperman said it will apply to all small businesses with a turnover of less than $2 million. The legislation will backdate eligibility to Budget night – Tuesday, 12 May 2015 – so that assets acquired on or after 7:30pm (AEST) on that night will be eligible for the concession.
If you’re taking advantage of the new measure, you’ll need to pool other assets over $20,000 or more and depreciate these assets at a rate of 15% in the first year and 30% each following year.
But make sure to keep records of your purchases to claim your deduction, says Mr Vesperman.
ATO is on the lookout
The ATO is on the lookout for rorts, though, such as claiming items that are actually for personal use.
‘We will be monitoring claims of this nature and following up on high risk cases,’ Mr Vesperman said.
You can get the latest tax updates and information via the ATO’s new small business newsroom service. Subscribers receive email updates on the latest news every three to four weeks. But they can also choose to stop receiving general tax information by mail and read it in the newsroom instead. You can also check key dates and download them to your own calendar.
See more information on the immediate $20,000 asset deductibility here.
