Take advantage of the instant asset write-off today

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David Koch and tech expert Val Quinn explain how small business owners can get the tech they need and claim it instantly.

For more great tech advice check out the Intel Tech Hub

Watch more great tech videos here:
1. Financing options when upgrading tech
2. Work out what tech your small business needs
3. Discover 3 business benefits of up-to-date tech
4. Are laptops or desktops better for your business?

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22 COMMENTS

  1. So to clarify, say I have, as a small business, $10,000 in tax that I need to pay, I can make a purchase of $10,000 in computers and not have to pay that $10,000 tax bill?

    • Thanks for your question Dean. No sorry that isn’t how it works. The tax deduction is on the full purchase amount of whatever it is you buy for your small business. So if you bought a new computer system for $10,000 then you will get an instant asset write off on this amount of $10,000. You won’t be able to buy something for $10,000 for your small business and then not pay the $10,000 you already owe in tax.

    • So in English if you pay a tax rate of 30% tax you can only claim the tax component of the sale which of 10k is 3k

      • Hi Russell – yes, you can only claim the tax rebate which is the amount of tax included in individual items. So if you bought something for $10,000 then you will only get the relevant tax rebate for that amount. You do not get the whole $10,000 back. If you are thinking of making a purchase for your small business then it is best if you speak with your financial expert or accountant and speak with the tax office. Small business assist is available here: http://www.sba.ato.gov.au/.

          • Hi Charles – yes it is. So if you choose to buy something then you will get more of the tax rebate off now rather than having to wait and claim deductions over a period of years.

  2. Can I just ask, does his help small business startups. I’m in need to buy a new tattoo removal machine. 40k new. As my business isn’t running as of right now. Would this help alleviate pressure on buying this machine??
    Thanks

    • We can’t give specific financial advice so you’ll have to check with your accountant but if you have an ABN then and are registered as small business then it should in theory be fine. However, you will have to make sure the tattoo removal machine you are buying is under $20,000. If in doubt speak with the small business assist for the Australian government tax office or your trusted financial adviser before making your purchase to ensure both you and your small business will benefit. Visit thsi government website for more specific information on individual purchases http://www.sba.ato.gov.au/

  3. Hello,

    What does writing off mean?

    If I buy a sewing machine ($900.00) for an alterarions business, does writing it off mean that I get that money back for the Sewing machine?

    Thanks,

    • Thanks Noah. Your question dropped off. But this essentially means that you can claim the amount purchased (as long as it is a directly relevant purchase for a registered small business and the cost price for each individual item is less than $20,000) and then you can get a tax rebate. We can not give specific financial advice for individual circumstances so the best thing to do is to speak with the government department or your financial expert or accountant. A good place to start is with Small Business Assist who will be able to help you with specific questions relating to your small business. visit: http://www.sba.ato.gov.au/

  4. Hi … so if I buy 2 mobile phones and a laptop and an iPad and that totals $5k then it becomes an instant right off?

  5. So is it right that if I earn say 150k income from my business annually and i buy a couple of capital items worth say 8k each then it reduces my taxable income by 16k down to 134k.
    Is that right?

    • Hi Perry – thanks for your question. I’m sorry it is not possible for us to give out individual financial advice for specific circumstances. If you are a registered small business then yes you will be able to make a couple of purchases for $8,000 each and claim on these individually. In theory your taxable income will be reduced yes. But you will need to speak with Small Business Assist http://www.sba.ato.gov.au/, the tax office and your financial expert before making any purchase to ensure this will be relevant under this instant tax rebate. In theory your taxable income will be reduced and you would not have to wait for depreciation on assets over a period of years but will be able to claim all the tax benefits within one financial year. Good luck!

    • Hi Warren – thanks for your question. You will need to be registered as a small business with an ABN. If it is a part-time small business then you will definitely need to check on your individual circumstances with the tax office as if you are using the car for personal purposes this will be taken into account. It will also have to be a small business you are paying tax on any income. Speak with the small business assist for the Australian government tax office http://www.sba.ato.gov.au/ or your trusted financial adviser before making your purchase to ensure both you and your small business will benefit. The item can not be more than $20,000 or it will not be valid. Please make sure you seek expert advice on this about your particular circumstances before making a purchase. I’m sorry it is not possible for us to dispense individual financial advice for specific circumstances. Good luck!

  6. Hello

    I need to build a new brick storage shed for my construction related business.
    Will all associated costs of this build qualify for the write-off?

    • Hi Rik – thanks for your comment. Is the new brick storage shed 100% for use of your small business? Will the cost of the shed be less than $20,000? ARe you registered as a small business in Australia? If the answer is yes to these questions then in theory the answer is yes. However, you need to seek individual advice before making any big purchase to double check. Please speak with Small Business Assist which is a special government department http://www.sba.ato.gov.au/

  7. Hi I live in Brisbane but had work in Perth ,my company I’m the owner paid for the flights back to work and back to Brisbane ( 23.000$ ) can I claim the flights and accommodation & car that I used in the west cheers

    • Hi Gaddy – thanks for your email – you can claim for relevant flights and accomodation through your tax but this would not be relevant for the $20,000 instant tax write off. Our understanding is you need to buy something such as office equipment or have something built such as a website. For any specific questions speak with the government section small business assist http://www.sba.ato.gov.au/

    • Hi Richard – this is only valid for items which costs $20,000 or less (it can be no more). If you are buying an item relevant for your small business which you can purchase in parts then it may be possible to buy them separately and claim for them as two individual items. If in doubt always check with the government area Small Business Assist who will be able to advise you on specific circumstances. Visit them here: http://www.sba.ato.gov.au/

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