From yesterday, the small business instant asset write-off threshold increased to $6,500 from $1,000. This means that assets you purchase for your business up to $6,500 can be written off this financial year. This could help with small shop fit changes, new signage, new newsagency computer system and other capital investments in your business. There is also a change to depreciation for motor vehicles which may benefit newsagents changing vehicles.
Here is an example direct from the ATO website:
During the 2012-13 income year, Kylie’s Flowers buys a new refrigeration unit for $3,000. As the refrigeration unit is a depreciating asset and costs less than $6,500, the business can claim an immediate $3,000 deduction for the 2012-13 income year.
These depreciation initiatives specifically for small businesses have not received the coverage they should have given the mass coverage on the carbon tax. Some media outlets are very selective in what they report.
Why wont the Govt. just give small business a Tax break of $5000 instead of the asset write off or the motor vehicle depreciation? This way every small business would see a benefit not just those that can afford to spend money during these difficult retail times. The way i see the vehicle rebate is “just another free kick to the auto industry”. These offers from the Govt have a little De Ja Vous to them all………
Al
Allen,
I agree, its the business that does not have a lazy 20K lying around to invest that really needs help right now
Glass is half full. It’s a good move.
Allen,
The changes to the small business write off threshold are not designed to prop up struggling business just trying to pay their bills. They are intended to encourage increased investment (on a small scale).
There would be less economic benefit to a blanket tax break which would cost significantly more. A tax break would result in a simple reduction in tax revenue for the government, while an increase to the write-off threshold simply moves the time a purchase would normal be claimed forward (ie essentially the same amount is claimed, just earlier).
I am not saying that any help is not appreciated it just seems to me that every time this Govt offers help to SB it is with a car rebate…..werent we all up in arms a little while ago about the massive handouts to the car companies?
Surely the Govt can come up with something that benefits ALL small bussinesses not just those that have some extra cash to update a car.
We need somebody to think outside the square…………