Claim full business purchases of up to $5,000 against your tax by March 16 2021
This is just a reminder – The Government passed legislation this past year, due to COVID, which temporarily increases the low-value asset threshold for depreciation from $500 to $5,000.
This means you can deduct the full cost of your business asset purchases, with a value of less than $5,000, in this current tax year. This is instead of having to spread the cost over the life of the asset (What’s known as depreciation).
The Government is only raising the threshold for a short time, until 16 March 2021, so if you need a vehicle or trailer, mobile phone upgrade, new computers and office equipment, or other plant and machinery valued under $5k, now is a good time to purchase them. For assets purchased on or after 17 March 2021, this threshold will now permanently be raised to $1,000.
For more information or if you’d like to discuss your options, contact the team at Tag, we’d love to help.