In conjunction with the recent announcements regarding the carbon tax, the ATO has made significant changes with regard to the Tax Free Threshold and Write-off for capital purchases.
Businesses with less than $2M turnover previously had to depreciate any assets which cost more than $1,000 over several years. From 1 July 2012 this has changed to a whopping $6,500. If you buy an asset valued at say, $5000, it can be “expensed” straight away, no need to include it in your depreciation schedule. It’s like an instant expense which reduces your taxable income .
The benefits are aimed towards smaller business owners as it affects their cash flow almost immediately, rather than being depreciated and split over a number of years. Want to receive these tips and tricks in your email inbox? Subscribe now and remain continually updated.
Would you like to see an example of how to manage asset depreciation and writing off assets using MYOB accounting software?
To find out more, click the ATO’s link here: Small business concessions: changes to simpler depreciation rules apply from 2012-13
Xero has always used its partner network to reach it's users. I remember one claim…
The purpose of a well designed course is to provide a series of steps for…
I've tried and tested hundreds of software programs over the last 25 years and I've…
Working with our graduates we've discovered that organisations are still looking for staff who can…
We receive lots of bookkeeping course enquiries from students who are changing careers and want…
Am I speaking gibberish or just crazy? No, I'm speaking the language of eInvoicing! PEPPOL…