Are you planning to purchase substantial assets or a motor vehicle in your small business?
- Small businesses will be able to claim a deduction for the first $5,000 of the cost of a motor vehicle purchased after 1 July 2012, with the remainder of the cost being allocated to a small business depreciation pool and depreciated at 15% in the first year and at 30% in the subsequent years; and
- Small businesses will be able to write off depreciating assets purchased from 1 July 2012 costing less than $6,500 in the year in which they start using the asset or have it installed ready for use. The cost threshold applies on a GST-exclusive basis for those taxpayers who are entitled to claim input tax credits and on a GST-inclusive basis where they are not, e.g. not registered for GST.
You should take these measures into account when planning your business’ asset purchases for the next year or two. Your Ruddicks adviser can provide further guidance on these matters.
TAX TIP! Do you employ staff? PAYG Payment Summaries must be issued to employees by 14 July 2012 and lodged with the ATO by no later than 14 August 2012. A limited exemption is available for businesses that only employ closely held payees – e.g. family members, directors of a company, shareholders or beneficiaries. Your Ruddicks adviser can help you determine whether you qualify for this exemption.