One welcome surprise in this budget was the increase of the instant asset write-off from $1000 to $20,000 for SMB. Once we had a $6,500 instant asset write-off and when too many took advantage of it, it was taken out by the government because it was too expensive. So we were all stunned that they put it back plus they made it $20,000 much more than before.
This means that any businesses whose annual turnover is under $2 million can claim an immediate tax deduction for $20,000 rather than having to depreciate this amount. It is extraordinarily generous as it is quite a sum of free money. The government estimates that it will cost them $1.75 billion for the next two years. Going by my experience it cannot last as people are going to jump on it. Among what can be claimed are computers and software purchased for business use.
I would suggest that you talk to your accountant as it is a generous offer.
We certainly will be putting out an advertisement to notify our clients of this unexpected development.
