The ATO has published guidance on the Government’s proposal to allow small business to immediately deduct each asset that costs less than $20,000.
Deputy Commissioner Steve Vesperman said while legislation to give effect to the proposal has not yet been enacted, it will apply to all small businesses with a turnover of less than $2 million. The legislation will backdate eligibility to Budget night, Tuesday 12 May 2015, so that assets acquired on or after 7:30pm (AEST) on that night will be eligible for the concession.
Small businesses taking advantage of the new measure will need to pool other assets over $20,000 or more and depreciate these assets at a rate 15 per cent in the first year and 30 per cent each year thereafter.
“It is also important that small businesses keep records of their purchases to claim their deduction,” Mr Vesperman said.
“The ATO will be working with small businesses looking to use the immediate deduction to ensure they are appropriately claiming it,” Mr Vesperman said.
“We will be monitoring claims of this nature and following up on high risk cases.” Mr Vesperman said.
Small businesses can get the latest tax updates and information via the ATO’s new small business newsroom service.
“This online tax and super news service tells you what you need to know, when you need to know it,” Mr Vesperman said.
“Subscribers receive email updates on the latest news every three to four weeks. Small business owners tell us the articles are easy to read and understand, and the modern style is “easy on the eye”.
Subscribers can choose to stop receiving general tax information by mail and read it in the newsroom instead. Small businesses can also check key dates and download them to their own calendars.
Join more than 45,000 small businesses and subscribe now at ato.gov.au/sbnews.
For more information refer to the ATO’s alert on the immediate deductibility for assets less than $20 000.