Accelerated depreciation for small business
A Golden Opportunity to purchase or upgrade your computer equipment if you are a small business with a turnover less than two million dollars.
The introduction of accelerated depreciation charges for small business on eligible goods by the Federal Government, combined with the present low prevailing interest rates has provided a real window of opportunity for you to upgrade your computer equipment.
The following is an excerpt from the Australian Government’s Budget 2015 Overview:
All small businesses will get an immediate tax deduction for every asset they buy costing less than $20,000. Currently, the threshold sits at $1,000.
This $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they like.
These arrangements start Budget night and continue until the end of June 2017.
Increasing the depreciation threshold will mean improved cash flow for small businesses. It will encourage them to bring forward investment in the assets they need to grow their business and service their customers.
The new threshold will also mean small businesses spend less time tracking assets across years for tax purposes. This cuts red tape and allows business owners to focus on running and growing their business.
Any assets over $20,000 can be added together (‘pooled’) and depreciated at the same rate. These assets are depreciated at 15 per cent in the first income year, and 30 per cent per year thereafter.
If the value of the pool is below $20,000 until the end of June 2017 it can be immediately deducted too.
This temporary jump in the threshold will support small businesses to invest in new assets which will help them grow and prosper into the future.
Do some planning – look at all the areas of your small business and review which areas need to be improved and prioritise with those which are essential for improving the management and efficiency of your business. Areas may include: ageing software, slow internet speed, data storage, backup and protection. Make a plan and stick to it.
Here at Forerunner Computer Systems, we can:
- Help you with the planning, installation and configuration of all your new IT infrastructure. Now is the time to replace the aging hardware for new.
- Help you with upgrading your existing network, making it faster and more efficient.
Do not delay, take advantage of this unique opportunity today and ensure you get your computer is upgraded to current standards.
Ring the friendly Forerunner Tech Team on 8269 5260. They are looking forward to your call to discuss your computer needs.