If you’ve been thinking about having a website designed to remain competitive but never had the budget, you might be pleased to hear you can with a $30,000 tax break.
The Instant Asset Write Off Scheme has been around for a few years now, and the recent extension announced by the Federal Government’s 2019-20 Budget is making it an even sweeter deal for more businesses.
Surprisingly, not many businesses have previously taken up the offer due to lack of awareness about the scheme, but we’re here to tell you that if you’re eligible, you can immediately claim the cost of developing or redesigning your website.
A huge boost for your business right?
What is the Instant Asset Write Off Scheme?
Back in 2015, the Federal Government included in their Budget an instant asset write off that allows small businesses (businesses with an annual turnover of less than $10 million) to immediately write off depreciable assets up to the value of $20,000. A big jump from the original $1,000 write off!
This is different to the standard tax deductions you can receive for making purchases for your business, because you can instantly claim the deduction within the same income year as the asset was purchased.
What has changed and who is eligible?
The government has since given the scheme a boost by extending it until 30 June 2020, and increasing the threshold to a generous $30,000. Medium sized businesses with a turnover of up to $50 million can now also benefit.
What does this mean for your business?
If your business qualifies, you can instantly claim the cost of assets purchased for your business up to the value of $30,000 within the same financial year, provided your new asset is first used, installed or ready to use that same year.
For example, if you make a purchase in June 2019, but it won’t be installed or used until October 2019, you won’t be able to write it off.
In addition if the asset you purchase is also for personal use, you can only claim the percentage used strictly for business purposes.
So if you’re looking to invest in a new website, you can enjoy immediate tax relief and accelerated depreciation claims with a website tax deduction for your website build. If you’re unsure whether you’re eligible, check with your accountant for information on your individual circumstances.
EOFY is just around the corner, so now is the time to take advantage of the instant asset write off and give your business a competitive edge with a professionally designed website by Cloud Cartel.