• The Farmers Accountant

Instant Asset Write-Off, Now $25,000

If you are a small business, chances are that you have been enjoying the immediate write off of asset purchases under $20K GST exclusive. This scheme was to end on 30 June 2019, however the Scott Morrison announced at the end of January that the scheme will not only run to 30 June 2020, it will be increased to $25,000.

In Morrisons first speech of 2019, he said “Businesses can go out and invest today - whether it’s a vehicle, a piece of plant or equipment, all of it, up to $25,000 for immediate write-down.”

Some points of clarification:

  • It is only available for small businesses. For the 18/19 year, a small business is regarded as one that turns over less than $50 million. Big business is not entitled to this concession, however most bush businesses would fit within this threshold.

  • The purchase price of the new item of plant has to be less than $25K GST exclusive (ie less than $27,500 GST inclusive) to be eligible.

  • The write-off is not available for rental properties or non-business purchases.If the plant being purchased is a part private use asset, the total price of the acquisition has to be less than $25K GST exclusive (and not just the business portion).

  • If various acquisitions are incurred for the one purpose (eg shed and concrete floor), the items are added together for the purposes of assessing the $25K threshold.

When you consider the number of items that can be purchased for under $25K, this is welcome news for many small businesses who would enjoy some up-front relief on the tax side of things.


Fuel Tax Credit (FTC)

The FTC rates have increased from 4 February 2019 to 30 June 2019. For in business use (off-road) the FTC is 41.6c/Litre. For heavy vehicle use on public roads, the FTC claim is 15.8c/km.

FTC - Read more here


Scams Targeting ASIC Customers

There are a lot of scams around for people who have business names or companies registered with ASIC. You may have received an email indicating that the renewal of either the business name or the company review is coming up. Best not to trust these emails.

An email is probably a scam and is not from ASIC if it asks you:

  • to make a payment over the phone

  • to make a payment to receive a refund

  • for your credit card or bank details directly by email or phone

For more information, click the button below.

ASIC Customer Scams