Take advantage of end of financial year

Business owners, now is the time to invest in your creative team and upgrade them to the tools which will take their productivity to the next level. Take advantage of the government’s small business incentive scheme* – an immediate tax deduction for all purchases up to $20,000. All purchases before 30th June 2016 will be included in this year’s tax.

What is the incentive?

A tax break was announced last year in the 2015 Federal Budget.

What is included?

The purchase of any product that is used to run your business. Even better, it can be used on as many individual items as you like.

When is this offer available?

This offer is available until 2017, however any products purchased before 30th June 2016, will be included in this year’s tax.

The following example shows the impact this concession can have:

Normal calculation:                        


Taxable profit                                                  100,000

Tax @ 28.5                                                         -28500

Net surplus                                                         71500

Using Instant Tax Write off:

Taxable profit                                                 100.000

Less tax write off                                            -40,000

Net taxable profit                                             60,000

Tax @ 28.5%                                                    -17100

Net surplus                                                       82,900

The second example is based on purchasing two business related assets within of $20,000.

Key points:

  • The purchase must be business related.
  • The business turnover must be $2m or less.
  • Must be installed ready for use before 30th June 2017.
  • Assets acquired can be new or secondhand.
  • Multiple assets under $20,000 can be claimed within the one year.


As with all such matters, this overview should be taken as a guide only and you should seek advice from your accountant to see if asset acquisitions are appropriate for your business at this time.


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