Eco Innovator November 2011

Government Policy

Instant Write Off of Assets

Innovative companies will be among 2.7 million small businesses expected to benefit from tax changes that simplify depreciation rules and will improve cash flow and reduce compliance costs.

Changes include immediate write-off for assets valued at under $6,500, up from $1,000 presently, and write-off of other assets in a single depreciation pool at a rate of 30 per cent, after 15 per cent in the first year.

The increase to the instant asset write-off threshold will allow small businesses to claim an immediate deduction for assets, such as most office equipment, that cost less than $6,500, where they previously had to depreciate them over time.

Consistent with recommendation 6 of the Australia's Future Tax System Review, the package also includes legislation to abolish the entrepreneurs' tax offset "to deliver more effective assistance to Australian small businesses".

 

 

 

 



 





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