In the recent Federal Budget announcement, Australian small businesses can now claim an immediate 100% tax deduction on any business related purchases (including Attachments) up to $20,000.
Who gets it?
If you are registered business, i.e. you have an ABN, and it turned over less than $2 million you can claim.
Businesses can buy any machinery or equipment related to their business if each item is valued at less than $20,000. You can claim the full amount from your income to reduce your tax bill. There is no limit on the number of items a business can claim.
What CAN I claim?
Cars, vans, utes, trailers, motorbikes, lawnmowers, ovens, fridges, coffee machines, other machinery (eg. Attachments), kitchens, tables and chairs, carpets, printers, photocopiers, tools, welding equipment, saws, generators, pumps, solar panels, heating, hot water units, water tanks, airconditioning units, sound and security systems, computers – any item used for running the business – will be 100 per cent tax deductible.
What CAN'T I claim?
You cannot use the money to buy stock for your business. Horticultural plants and in-house software also do not qualify.
When does it start and end?
You'll have effectively two years to take up the tax break. The small business tax deductions will start at 7.30pm May 12, 2015, and end on June 30, 2017.