$20,000 Immediate Deduction for Asset Acquisitions

The threshold below which small businesses can claim an immediate deduction for the cost of an asset they start to use or install ready for use was temporarily increased from the current $1,000 to $20,000, effective from the 12 May 2015.

This presents small businesses with a great opportunity to get some additional tax deductions in the 2015 tax year by buying equipment costing less than $20,000 before 30 June 2015.

As always, careful consideration should be made to all purchases – Only buy assets you were intending on acquiring anyway.