Tax Write-Off Scheme

03 May 2017

Tax Write-Off Scheme

Your EOFY Bonus is back again!

You may remember last year’s announcement of the instant asset tax write-off scheme. If not, here’s a recap:

Small businesses can immediately claim deductions in their income tax return for assets worth up to $20,000
Assets must have been purchased after 12 May 2015, and before 30 June 2017
The deduction is claimed in the income year in which the asset is first used or installed ready for use

Why is that important? Because Photobooths are counted as a capital expense, so they CAN be included in the tax write-off scheme.

According to the ATO website (full article here) the instant asset write-off threshold increased to $20,000 for the 2015 and 2016 income tax returns (up from $1,000). The scheme allows you to immediately deduct the business use portion of a depreciating asset that costs less than $20,000.

The changes apply

to assets acquired after 7.30pm on 12 May 2015 until 30 June 2017
on a per asset basis, so several assets each costing less than $20,000 would qualify
to new and second hand assets.

In a nutshell, if you’re an actively trading business with a turnover of under $2 million, when you buy a photbooth you could claim it as an upfront tax deduction, rather than depreciating it over time. That’s money back into your pocket straight away!

Email us now to find out more.

*Of course, we recommend you check with your Accountant, but we’ve spoken to ours and he’s pretty excited!