With the dust now settling on this year’s federal Budget, it’s worth asking whether the temporary increase in the accelerated depreciation threshold to less than $20,000 is worth the hype.
The overwhelming response from the finance experts is yes. We’ve had a chance to have a good look at the new incentive and thought it was so good we would help spread the news to our clients and friends in the cabinetry industry. Small businesses quite often get a raw deal from our government but this new incentive is fantastic news for cabinetry and building small business.
- A small business can claim an immediate deduction for the cost of an asset it first starts to use, or have installed ready for use for a taxable purpose, from $1,000 to $19,999.
- The increased threshold will be available between 12 May 2015 and 30 June 2017.
First things first, does your cabinetry or building business qualify?
Small businesses with an annual turn over of less than $2 million are eligible for the accelerated depreciation threshold. If you also have tick the following boxes:
- You must be in business (just because you have an ABN doesn’t mean you qualify for the instant asset write off.)
How this helps your cabinetry or building business?
If you have been considering making some purchases for your business then now is a great time. The following items would qualify for the immediate deduction:
- Machinery and tools
- Software (WoodCAM, KD Max and Pack IT)
- Website for marketing (this is considered an asset)
Please Note: Cabinets by Computer is not a financial adviser and all purchases should be checked with your accountant to clarify if they qualify for the accelerated depreciation rules.
The Cabinet by Computers team.