Urgent Action – Tax benefits expire 1st January 2014

Small business (those with an aggregated annual turnover of less than $2 million), have only 4 weeks to take advantage of tax benefits of the  “Instant Write-off Threshold” for assets purchased and the “Accelerated Depreciated for Motor Vehicles.”

The Instant Write-off Threshold allows small businesses to obtain an immediate deduction for business-related assets which cost less than $6,500 (GST exclusive). This threshold will revert to the former threshold of $1,000 (GST exclusive).

Accelerated Depreciation for Motor Vehicles provides an immediate deduction for the first $5,000 of any business related motor vehicle purchased. Once this concession is repealed, motor vehicle purchases are subject to normal depreciation rates.

Businesses only have four weeks to take advantage of these laws. If considering purchasing assets in the new year, for those eligible, it may be bringing forward the purchase so it occurs in this calendar year.

Note, the assets must be in use prior to 1st January 2014.

Please contact us if you wish to discuss the matter.