For Australian businesses looking to invest in capital equipment, the recent Federal budget delivered some great news.
Not only can a business purchase capital equipment up to $20,000 and benefit from the associated tax deduction, but the annual turnover threshold has also been increased to $10 million—a big increase on the previous $2 million per year annual turnover limit!
So if you’re considering investing in capital items—like large-scale equipment, security, some software and technology-related services, this financial year may be the time to do it—first and foremost, to reduce your tax, but also to enjoy the benefits that this equipment can deliver through improved efficiencies, business growth and job creation.
While your accountant is best placed to advise on the individual circumstances of your business, it’s certainly something worth investigating. But don’t delay; at this stage the scheme is only scheduled to run until the end of the 2017-18 financial year.
Feel free to bounce your ideas for capital purchases off a PaySmart Business Development Manager or for further information, check out the Government’s budget website.
