Talking Cents
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Your business accountant letting you know the current depreciation lawsBack on the 24th October 2011 I posted a blog explaining the proposed changes to depreciation laws aimed at helping small business. Well, I thought as your small business acountant, it is a timely reminder to bring this matter back to the forefront of your business decision making processes. I may well do so again before 30 June, it's that critical!You see, the changes now passed as law, will give you a much greater tax deduction for purchases of capital equipment. Previously any capital item costing under $1,000.00 was able to be fully claimed in the year of acquisition. From 1 July 2012, this amount has been increased to $6,500.00. That's likely to have a serious influence on whether or not you acquire a new item of equipment now or hold off until 1 July. Of course, if your business is in desperate need of that piece of equipment, then the timing may work against you. For other planned expenditure, delaying the purchase until post 1 July will definitely benefit your business, by way of greater income tax deductions. This is especially critical for small businesses tight on cash flow. Being able to make a higher tax deduction in the year of purchase means that tax bills are minimised which in turn promotes the investment in income producing capital equipment. If you have any further questions on this matter do not hesitate to contact us, your small business accountant in Sydney. |