Small businesses will get an extra tax break with the government again extending the instant asset write-off to mid-2020 and increasing the amount to $25,000.
Is your small business planning to purchase a major asset this year? You can get a business loan to purchase the asset before end of financial year and take advantage of the small business tax break.
It allows businesses with a turnover of up to $10 million a year to instantly claim tax deductions on all plant and equipment purchases worth up to $25,000. This is a great opportunity to discuss with us your capital expenditure plans over the next 12 months’ and work out the impacts to your cash flow. We have a range of cash flow finance solutions available to assist you with the purchase of your plant and equipment needs.
Who is Eligible?
All small business entities with an aggregated turnover of up to $10 million can claim the instant asset write-off. Most assets used for a taxable purpose are eligible for the $20,000 instant write-off. There also needs to be a direct relationship between the asset purchased by the business and the way the business generates income. Check with your accountant if you are unsure.
Can you Fund the Purchase with a Loan?
As long as your business cash-flow supports the regular loan payments for the amount that you need to borrow, you can claim the instant asset write-off this financial year using finance to fund the purchase.
For specific information on getting finance for an asset to speak to Venn Williams, CEO BlueKite Capital on 0416 251 140 or email v.williams@bluekitecapital.com.au