The 2013 financial year is shaping up to be a good year for small businesses. The government has announced some proposed changes which will aid cash flow and reduce compliance costs.
Motor Vehicles eligible for large upfront deduction
In the lead up to the May 2011 Budget, the government announced that small businesses would be eligible for an upfront write off of up to $5000 for motor vehicles purchased from 1 July 2012.
Increase to immediate write off from $1000 to $6500
These relate to business assets costing $6500 (net of GST) or less, and where the business first uses or has installed ready for use from 1 July 2012
Accelerated Depreciation
Allocating existing depreciating assets costing $6500 or more to the small business pool and depreciate them at 15%for the first year and 30% in the following years
Who is eligible?
- Those that are small Business entities
- The business choses to use the Small business capital allowances provisions
- The business starts to use the depreciating asset, or has it installed and ready for use
- The cost of the asset is less than $6500 (net of GST). Please note that motor vehicles do not have a pre-determined purchase amount to qualify for the $5000 immediate write off.
To find out if you are eligible for these initiatives please contact Femia and Associates on 9316 4500.
www.femia-accountants.com.au – Accountants Perth