According to Business Review Weekly, the SME (Small Medium Enterprise) tax break may stay law beyond January 1.
This tax break is an instant asset write-off that allows small businesses to immediately depreciate assets worth less than $6,500. It looks likely to remain as law despite its January 1 deadline after the failure of the repeal of the mining tax in the Senate.
CPA‘s head of policy, Paul Drum, told BRW “Businesses could act as though it is still law, but they are living under the shadow of it being backdated”.
From the 1st of January, the threshold for the instant asset write-off will drop back down to $1,000. If you wish to use this tax break, ensure the assets are installed and ready to use before January 1. From the 2012-13 income year: the small business instant asset write-off threshold has increased from $1,000 to $6,500, small businesses can claim an accelerated initial deduction for motor vehicles acquired in 2012-13 and subsequent years and the long life small business pool and the general small business pool have been consolidated into a single pool to be written off at one rate.
A tax break that allows small businesses to instantly write-off $5,000 on motor vehicles is also timed to end on January 1. From the 2012-13 income year, a small business using the simplified depreciation rules can claim up to $5,000 as an immediate deduction for a motor vehicle costing $6,500 or more that it starts to use, or have installed ready for use, for a taxable purpose.
For more information, or to simply have a chat with a knowledgeable and experienced accountant – please don’t hesitate to get in touch with the team here at Fortis Accounting Partners. You can reach us on 02 9267 0108, or via info@exemplary-financial.flywheelsites.com.
