The deadline is approaching for claiming tax breaks….
The clock is ticking for businesses that want to take advantage of the instant asset write‑off and Small Business Energy Incentive, which expire on 30 June.
Under the instant asset write-off, businesses can claim an immediate deduction of up to $20,000 for the business portion of the cost of an asset in the financial year the asset is first used or installed ready for use. Eligible assets or upgrades will need to be first used or installed ready for use before 30 June 2024. The instant asset write-off can be claimed for new and second-hand assets, as well as multiple assets if the cost of each individual asset is less than the relevant threshold.
The Small Business Energy Incentive gives small businesses an additional 20% tax deduction on spending that supports electrification and more efficient use of energy. Eligible assets or upgrades will need to be first used or installed ready for use between 1 July 2023 and 30 June 2024. Businesses can spend up to $100,000 with this incentive, with the maximum bonus tax deduction being $20,000 per business.
Looking to make a commercial purchase prior to June 30? Need finance? Get in touch!