How to take advantage of the $20K instant tax write off before 30 June!

Claim your $20,000 instant asset tax write-off before 30 June!

If you’re considering using this tax break before the end of this financial year, then its important you know exactly how it works so you have the facts. Why not put more money back in your pocket? If you need it, this is a great time to upgrade your technology to help your small business long-term.


Australian small businesses with an aggregated turnover of less than $10 million may be eligible for this instant asset write off for items $20,000 or less. This special tax depreciation was first offered on 12th May 2015 and was scheduled to cease on 20th June 2017. However, thankfully, in the 2017 Budget, this was extended a further 12 months until 30th June 2018. At this point the previous $2 million threshold was increased to $10 million, where it currently sits.

Watch this video to find out more about the $20K instant asset write-off or see the Australian Taxation Office information page

You are eligible to use simplified depreciation rules and claim an immediate deduction for the business portion of each asset (new or second hand) costing less than $20,000 if: you have a turnover less than $10 million (increased from $2 million on 1 July 2016), and the asset was first used or installed ready for use in the income year you are claiming it in.

Does any of this include GST? The cost of the item must be $20,000 or under (inclusive of GST) and even if you are registered for GST and claimed this GST back then your threshold doesn’t include GST.

Remember, it is possible to use this $20,000 option multiple times. However, the cost of each item must be under the threshold and these can include items bought second hand.

If in doubt speak with the small business assist for the Australian government tax office or your trusted financial adviser before making your purchase to ensure both you and your small business will benefit. At the end of the day if it will help your small business and you’ll be saving money, then you’d be crazy not to seriously look into it.

Check with your financial adviser and see if you are eligible to claim:

  • Operating and maintenance costs such as domain name registrations, monthly hosting, ongoing content maintenance and technical maintenance are all deductible in full. See our website support packages and claim to get prepaid packages!
  • Website upgrades up to $20,000! See our website services or call us and talk to one of our team members 
  • Purchase one of our digital marketing packages to get your business strategy moving along!

Don’t sit on your hands if you have a small cash surplus. Confirm with your accountant the eligibility of your project and talk to us to finish projects that you can get an instant depreciation on!

Be quick as the $20,000 threshold will reduce to $1,000 from 1 July 2018*.

*Disclaimer: We are not a tax agent, you need to obtain dependent tax advise pertaining to your situation. Further details can be found on the ATO website.

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