$30000 asset write-off limit

So what if you want to buy an asset costing more than $30,000 (ex GST)?

Well as a small business, you will be able to claim 15% depreciation on the cost of the asset.  So a $50,000 asset bought today will still generate a $7,500 tax deduction in the 2019 tax year (and $12,750 next year).

Buy the same asset on say 7th July, and your claim for next year is only $7,500.

And you still may be able to write-off the balance in the 2020 year for an asset costing more than $30,000.  The $30,000 limit also applies to the undepreciated pool balance.  We had one client buy a vehicle for $35,000.  Come July 1 2019, the pool balance will be $27,500 (as that is the only asset they are depreciating).  They can write off the balance of the car in the 2019/20 year.

Please refer to our three part series of 21 tips and traps for the instant asset write-off.  Or better yet, call us on 9899-7511 to discuss your situation and opportunities.

At MRS, we will spend today planning for your success.