For those of you that aren’t aware, the 2015-2016 Federal Budget was handed down last Tuesday night, 12 May 2015, and most people acknowledge that the big winner from the Budget is Small Business.
It is no secret that our target clientele is small to medium business owners (and investors), so if you are reading this email then there is a fair chance that you are a business owner that should be happy with the Budget announcements.
As part of the Federal Budget, the Treasurer, Joe Hockey, announced that the Government will significantly expand accelerated depreciation for small businesses with an aggregated annual turnover of less than $2 million to immediately deduct assets which they start to use or have installed ready for use that cost less than $20,000.
The increase in the immediate asset write-off threshold from $1,000 to $20,000 is temporary. It applies to assets purchased after 7:30pm on Tuesday 12 May 2015 and will cease on 30 June 2017.
In simple terms, this announcement means that tax planning strategies for small business have increased dramatically, subject to being able to afford the asset purchase. In recent years, tax planning has become increasingly difficult to achieve as Government policies continue the fight against the Budget Deficit. However, this Budget provides small business with very generous incentives to invest back into the business.
To read more about the Budget then click on the link below which will allow you to look at the various aspects of the Budget in more detail.
Now is the perfect time to be reviewing your Year To Date results and assessing cash flow to ensure that the business is well placed to manage tax as effectively as possible. If you need any assistance in this regard, or would like to discuss the Budget in more detail, then please don’t hesitate to contact us.