Federal Budget 2015: How do I claim this $20,000 tax break?
Nassim Khadem -May 13, 2015
Australian households are taking a diminishing share of the national economic pie, says progressive think tank Per Capita. Photo: Paul Jones
HOW TO GET THE NEW SMALL BUSINESS TAX WRITE OFFS
WHO GETS IT?
If you are registered business, i.e. you have an ABN, and it turned over less that $2 million you can claim.
Businesses can buy any machinery or equipment related to their business if each item is valued at less than $20,000. You can claim the full amount from your income to reduce your tax bill. There is no limit on the number of items a business can claim.
WHAT CAN I CLAIM?
Cars, vans, utes, trailers, motorbikes, lawnmowers, ovens, fridges, coffee machines, other machinery, kitchens, tables and chairs,
carpets, printers, photocopiers, tools, welding equipment, saws, generators, pumps, solar panels, heating, hot water units, water tanks, airconditioning units, sound and security systems, computers – any item used for running the business – will be 100 per cent tax deductible.
WHAT CAN'T I BUY?
You cannot use the money to buy stock for your business. Horticultural plants and in-house software also do not qualify.
IF MY ITEM IS $20,000 OR OVER CAN I STILL CLAIM IT?
Yes, but the value of items over that amount qualify for less generous and more complicated tax breaks associated with depreciation.
WHEN DOES IT START AND END?
You'll have effectively two years to take up the tax break. The small business tax deductions will start at 7.30pm May 12, 2015, and end on June 30, 2017.Source: m.smh.com.au