Businesses operating in Australia must pay tax every year. Do you know your business can become eligible for tax breaks that can reduce the total amount you must pay to the government? Instant tax write-off refers to the tax break a business is eligible to claim for the asset purchased. Businesses can claim an immediate deduction of tax of assets purchased up to $150,000. The Instant Tax Write Off is a measure introduced by the Australian government allowing businesses to claim tax deductions immediately for the business portion of the total asset cost in the first year of using the asset or installing it for use. It is a form of accelerated depreciation that helps a business lower the total taxable income. This measure aids businesses in deducting eligible purchases to reduce their taxable income. It can lead to a cash flow benefit relative to the tax rate of the business. A business can use the immediate tax write-off measure for multiple assets if the cost of each business asset comes to less than $150,000 threshold. Businesses can also use this measure for their new or second-hand business assets purchased. If you have a small business, you must apply simplified depreciation rules to claim this tax deduction. You cannot use this measure for business assets excluded from those rules. Claiming Instant Asset Write-Off For small businesses operating in Australia, the application of simplified depreciation rules can help claim the instant asset write-off. It is not applicable for assets excluded from the simplified depreciation rule. Also, sole traders can become eligible for the instant tax write-off of $150,000. To claim the cost of your business asset, you must follow the following rules.
• You should have an active business while claiming the tax deduction.
• The business asset you purchase, and install must fall within the time specified by the Government (for the current scenario. When your business can track the expense and complete documentation, it becomes easier to claim such tax benefits. Consulting and getting assistance from a qualified tax practitioner can eliminate the stress. You get maximum tax returns with expert help. Irrespective of the size or complexity of the business, a qualified tax practitioner can maintain law compliance and ensure good tax returns. If you are operating in Australia,
check the services of Blucity Tax. Our team of expert tax professionals can help you get maximum tax returns and minimise and tax payable. You can get assistance to file your
personal and business tax returns. The proficient team completes the tasks given with perfection. Here are the features making them the best:
• Maximum Refund With several years of combined experience in the financial field, the experts can find tax deductions for maximum refunds.
• Up To Date Professional tax advisors can also help your business manage bookkeeping and accounting affairs. It becomes easier to track your business expenses.
• Better Returns The team of experts can complete all types of individual and business tax returns irrespective of their complexity. Get in touch with us for Tax & accounting advice to get to ensure your business is compliant and receiving all the tax benefits.