We keep up with tax news, so you don’t have to!News Article: July 24, 2019 by Oaktree Accounting Accounting
The Australian Taxation Office (ATO) has recently announced some updates and changes which could be relevant for your small business.
Changes to the instant asset write-off threshold
The $20,000 instant asset write-off threshold has been extended to 30 June 2019. This means that a small business can immediately deduct the business portion of most assets that cost less than $20,000 each, if they were purchased within the following time frame:
- If your turnover is less than $10 million, from 1 July 2016 to 30 June 2019.
- If your turnover is less than $2 million, from 7.30pm on 12 May 2015 to 30 June 2016.
You can claim this deduction for assets bought new or second hand. You’ll claim the deduction through your tax return in the year that you first use the asset.
Changes to GST on imported goods
GST now applies to imported goods, products or services under $1,000. But if you’re registered for GST, you may not have to pay GST on low-value goods that you import for your business. You’ll need to send your supplier a statement proving your GST registration along with your ABN.
If you follow these steps but you’re still charged, you’ll need to ask your supplier to refund this amount. If the GST amount is less than $82.50, you can claim a GST credit on your next BAS.
Talk to us about your small business tax, to make sure you’re making the claims you need to.