NEW TAX BREAK INCENTIVE -
NORTHERN MOTOR GROUP
A big tax break for small businesses
As you may be aware, the Federal Government has announced in the 2015-16 Budget that it will allow small businesses with an aggregated turnover of less than $2 million to immediately deduct the cost of each asset – including motor vehicles – purchased at a cost of less than $20,000. Previously, the instant asset write-off threshold was just $1,000. You can write-off as many individual items as you like so it’s the perfect time to update your small business vehicle from Northern Motor Group. Got an ABN, start shopping! We’re in stock! These employees will select one of the following three routes to purchase their vehicle:
This is a great opportunity for small business owners that may be eligible for the immediate tax deduction. Small business owners who are looking to upgrade their vehicle or add a new vehicle to their fleet.
Small businesses can elect to use the ‘simplified depreciation rules’. These rules allow small businesses to immediately deduct the cost of assets acquired for less than $1,000. Assets that cost over $1,000 can be added to a small business pool with a percentage of the pool balance at year end being deducted. 15 per cent of the cost of assets added to the pool during an income year is deductible in that year, with 30 per cent of the cost being deductible for each year thereafter
The threshold for immediate deductibility will be increased to $20,000 from 7.30pm 12 May 2015. The increased threshold is proposed to apply until 30 June 2017. The threshold for the low pool value rules will also be increased to $20,000.
This means that a small business will be able to immediately deduct the cost of each and every depreciating asset that they purchase for $20,000 or less. For assets costing more than $20,000, small businesses can elect to use the pooling arrangements and depreciate the cost of such assets at 15 per cent in the first year and 30 per cent each year thereafter.
The low pool value threshold will also increase to $20,000. This means that an immediate deduction is available if the pool balance is less than $20,000 at the end of an income year that ends on or after 12 May 2015 but on or before 30 June 2017.
These changes are intended to apply to assets acquired between 7.30pm 12 May 2015 to 30 June 2017.
Information about the budget measure can be found on the ATO website www.ato.gov.au or through the following link:https://www.ato.gov.au/general/new-legislation/in-detail/direct-taxes/income-tax-for-businesses/small-business---expanding-accelerated-depreciation
Seek independent tax advice for your business.
NORTHERN KIA BUNDOORA
At Northern Kia you'll find the newest cars that Kia currently has to offer, a team of factory trained staff, and a Kia service department that is renowned across the country for being one of the very best!
Address: 429 - 439 Grimshaw Street, Bundoora VIC 3083
Our Kia dealership is located in Bundoora, just north of Melbourne's CBD and our car servicing and car parts department is round the corner from the main dealership
Please use the contact details below to get in touch with a member of our team or visit our Kia dealership in Bundoora today!