Even for small businesses, owners will need at some point to invest in assets. In Australia, you can claim outright deductions for these depreciated assets. The question is — are you getting the maximum claims for these assets with your Melbourne accountant?
What You Need To Know
Here are some policies that you might want to review with your Melbourne accounting firm:
For any equipment purchased costing over $ 6, 500 (net of GST), you are entitled to claim an immediate write off in the income year during the time you start to use the asset or you already had it installed ready for use.
For the purchase of motor vehicles that costs $6,500 or more (net of GST), you can ask your Melbourne accountant to claim $ 5,000 immediate write off. If for instance, the cost of the motor vehicle is more than $ 6, 500, the $5,000 is entitled for immediate deduction and the balance is then subject to depreciation rates following this schedule:
-15% for the first year
-30% balance of income years
The threshold is based on the total cost of the asset, which is capped at $6,500. Keep in mind that your Melbourne accountant cannot be apportioned for private use. For instance, you purchased a new computer costing around $ 7, 000 and this machine is used about 80% of the time for the course of your business operations and 20% for personal use.
The taxable portion is $5, 600, which is 80% of the cost ($7,000 x 80%), your company will not be able to claim immediate deduction for assets due for private use.