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$20,000 (per item) Tax Deductions for Small Business

by Ella Risby | Jun 14, 2016

A friendly reminder to let you know that small businesses with an aggregate annual turnover of less than $2 million will immediately be able to deduct assets they start to use or install ready for use, provided the assets cost less than $20,000. This will apply for assets acquired or installed ready for use until 30 June 2017. The $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they wish. You should seek professional advice to determine whether you are able to claim a deduction for such purchases. 

From June 1st 2016 (pending legislation approval) the small business threshold will increase from $2 million up to $10 million.

Who is eligible?
Any business that meets the definition of small business entity, that is one with an aggregated turnover less than $2 million may be eligible for the immediate deductibility of assets costing less than $20,000. Though, from June 1st 2016 the threshold will increase to $10 million (pending legislation approval).

How can we help?
You can contact Dorchester Computing about using this tax break to build up your business' IT infrastructure and hardware. If you make your purchase before June 30th you can claim it in this year's tax return, so be quick to get in touch!

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