Increased instant asset write off for Small Business

Australian Government Clean Energy Future

The start of the new financial year sees change for Australia with the introduction of the Carbon Tax.

The government have published new information to help small business at http://www.cleanenergyfuture.gov.au/small-business/ including a fact sheet to print or email.

One important change is the increase in the instant asset write off for small business:

Increasing the business asset write-off

For businesses with an aggregated turnover of less than $2 million a year, the small business instant asset   write-off threshold will be increased to $6,500 for depreciable assets from the 2012-13 income year; previously the Government had announced that the threshold would be raised from the existing $1,000 to $5,000 in the 2012-13 income year.

The existing instant asset write-off improves business cash flow by providing an immediate income tax deduction for the cost of eligible assets. Increasing the amount businesses can write off immediately to $6,500 will increase cash flow and assist small business to grow and invest in new equipment.”

This is another consideration if you are upgrading your IT resources with NAR Design in the future. Please seek professional accounting advice to see how this impacts your specific circumstances.

Posted in Community.