Wednesday, 3 June 2015
Budget 2015 the government has introduced a change in the accelerated depreciation tax break that presents small business owners with a huge opportunity.
Rachel Baigant & Darragh Groeger
Winter is Coming.... But that's not necessarily a bad thing.
Especially not for small businesses in Australia who have the opportunity to benefit from an exciting new tax break....
It's not often that a federal budget is the cause for rejoice and celebration but that is exactly the reaction following the latest revelation.
Because in between the announcements about stamp duty, childcare increases and pension means tests, came this little nugget that set cogs whirring in the minds of small business owners around the country (or at least it should have).
Normally talk of budgets, tax, and spending can cause many an eye to glaze-over but pay close attention, as this is big news:
The Australian government have introduced a tax break designed to stimulate spending by "allowing small businesses with an aggregated annual turnover of less than $2 million to immediately deduct each asset that cost less than $20,000. This will replace the previous instant asset write-off threshold of $1,000." [Source]
A jump from $1,000 to $20,000. That's a whopping great jump and one that opens up reams of possibilities...
Accelerated Depreciation. Soon to be the favoured word combination of all Australian small business owners and undoubted future-recipient of an awkward portmanteau such as 'ac-dep'.
What it really means is that for any company generating less than $2 million in turnover can pick up some key operating assets, right now.
And here's the real kicker: it's not cumulative. From now until the end of June 2017, it allows your organisation to purchase an unlimited number of assets up to $20,000 in value. Really?
No, really. Here's more from the ATO website:
The balance of a small business pool can also be immediately deducted if the balance is less than $20,000 at the end of an income year that ends on or after 12 May 2015 and on or before 30 June 2017 (including existing pools).
The Government will also suspend the current 'lock out' laws for the simplified depreciation rules (these prevent small businesses from re-entering the simplified depreciation regime for five years if they have opted out) until 30 June 2017.
Helping the environment shouldn't be this easy. But it is.
Now is the time to take full advantage of this new responsibility.
The benefits of Mil-tek are well documented around this site. Click on any link and you'll be greeted by a different one.
One of the key points we highlight is the ability for a firm to actively generate revenue by using Miltek balers and compactors to sort, bale and compact their cardboard, plastic, polystyrene and mixed waste.
We typically show companies a cost-savings analysis of investing in Miltek. We like to identify the precise point in time where they can expecting to complete a full return on their investment and start generating revenue.
With the governments' new tax break however, that return starts today.
All of our pneumatic balers and compactors fall within the remit of this tax break.
So saving on tax can equate to an additional saving on waste - a double-bubble small business tax break.
Get in touch with one of our specialists today to organise a free site survey.
Take a look at some of these videos to see how Australian businesses minimize their waste and reduce their costs.
We have assembled a fantastic team of waste management professionals right across Australia & New Zealand who will show you how to implement a total waste management solution in your organisation:
Less waste, improved workflow, better hygiene, safer, happier staff.
And all that with the promise of reducing your carbon footprint.
So don't ask if you can afford to partner with Miltek (or indeed, if you can afford not to) move straight on to the real question:
When can we start?
Federal Tax Breaks for Small Business Owners