Geeks2U Promise
We guarantee you'll love our fast, friendly service - or we'll refund your money.  
133,572 Happy Customers & Counting
Need tech support?
1300 769 448
Extended hours, 7 days a week
Home  /  geekspeak  /  Time to think big as government extends $20,000 asset write-off to more businesses

Time to think big as government extends $20,000 asset write-off to more businesses

Close-up of graphs and charts analyzed by businesspeople

The taxman has smiled upon Australian businesses planning to spend up big on new computers and other expensive technology.

This time last year, the federal government introduced a new scheme to encourage small businesses to open their wallets, letting businesses with an annual turnover of less than $2 million write-off major purchases up to $20,000 in one year rather than three.

Now it’s been extended to businesses turning over up to $10 million, opening up a range of opportunities.

The scheme is available to anyone with an Australian Business Number. It doesn’t just apply to technology, it also extends to office equipment, tools, machinery, vehicles and most other business assets. Nor does it apply to just one purchase – there’s no spending limit as long as each item is under $20,000.

Remember, you’re not actually getting more money back from the taxman, you’re just getting your money back sooner so you can pump it back into the business.

Previously this deal was only available on purchases up to $1000, which meant that it typically didn’t apply to buying new desktop and notebook computers, or fitting out a server room.

Boosting the threshold to $20,000 is great if you’re planning a business-wide hardware refresh but it also makes it tempting to fast-track investments in a range of new technologies – from 3D printers and CNC machines for rapid prototyping to automation tools and even small industrial robots.

The whole idea is to encourage businesses to bring forward investments and innovations designed to improve their efficiency, increase productivity, open up new opportunities and boost their bottom line. You’ll need to crunch the numbers but if you’ve got big plans for the next few years now might be the time to act.

While the budget has expanded the scheme to cover more businesses, it hasn’t extended the deadline and it still expires on June 30, 2017. If you’re quick you might be able to take advantage of it in the 2015-16 financial year as well next financial year.

As always it’s a good idea to chat with your accountant before taking advantage of tax benefits. Don’t spend money just for the sake of it as you’re not actually getting a discount just a faster rebate.

Used wisely, the new tax rules might let you spend up big on tech to give your businesses a major shot in arm.

FacebookTwitterGoogle+Share

Recent News

lumia

For some years now, Microsoft has persisted with a multi-pronged software approach around its Windows 10 platform, going all the way up to high-performance workstation PCs through laptops, tablets and mobile devices, in order to service every possible computing need. While the general dominance of Windows in the desktop and laptop space is quite solidly… More 

googleevent

At its recent “Made By Google” event, Google unveiled a range of new smartphones, new home smart speakers, a new laptop, standalone camera and new smart headphones that it wants consumers to adopt. That’s a lot of new hardware, so you might be mistaken for thinking that the launch was all about physical technology. Except… More 

high_sierrasq

Apple’s latest major upgrade for its desktop operating system, macOS High Sierra is now available for qualifying iMacs, MacBooks, MacBook Pro and Mac Pro models, and if you pay attention to the counter in the app store icon in your dock, you’ve probably noticed it being ready to download, if not in fact pestered by… More 

ios11

Apple has recently released the latest update to its mobile operating system, iOS, bringing it to version 11. The new OS has a number of new features, including a limited file exploration app, updated music, photo and email apps, and a number of smaller tweaks to the overall interface and experience of Apple’s mobile products,… More