From the 2012-13 income year amendments have been made to the small business concessions. These amendments only apply if you are a small business that has an aggregated turnover of less than $2 million. Aggregated turnover includes the annual turnover of your small business and the annual turnovers of any connected or affiliated business.
The changes to depreciation from the 2012-13 year are:
• The small business instant asset write-off threshold has increased from $1,000 to $6,500
• Small businesses can claim an accelerated initial deduction for motor vehicle acquired in 2012-13 and subsequent years
• The long life small business pool and the general small business pool have been consolidated into a single pool to be written off at one rate
From the 2012-13 income year onwards, you can choose to use the capital allowance provisions to calculate the deduction for a motor vehicle costing $6,500 or more that you start to use, or have installed ready for use, for a taxable purpose.
The cost of the motor vehicle is added to the general pool but unlike other assets, the deduction is $5,000 plus 15% of the remaining amount.
Here at The Quinn Group, our dedicated team of accountants, tax agents and tax lawyers can help you with your small business concessions and legally miminising your taxation obligations. Complete and submit an online enquiry form or call us on 1300 QUINNS (1300 784 667) or +61 2 9223 9166 to arrange an appointment.