New legislation passed enables small businesses (revenue less than $2M) to claim an immediate tax deduction for all assets purchased that cost less than $20,000.
Additionally, assets currently being depreciated in a small business pool will qualify for an immediate deduction where that pool balance drops below $20,000. This means that small businesses will get a tax fuelled cash flow boost when investing in new assets. To see how this works, have a look at Sam's example.
When does the new measure start?
The new rules applies from 7.30pm AEST 12 May 2015 and will continue to 30 June 2017.
Is there anything else to keep in mind?
For those wanting to find out more about this announcement, and other small business measures, please refer to the fact sheet.