As a small business owner, it pays to know how to navigate tax time (even if you rely on an accountant). On top of reducing your taxable income and increasing your tax deductions, there’s a way to make your assets work harder for you. And it’s called the instant asset write-off.
A tax benefit for your business
So, what is it? The instant asset write-off is a government initiative which was introduced to allow small businesses with a turnover of less than $10 million to instantly claim the business portion of a purchased asset costing less than $20,000 in their tax return for that income year.
In January 2019, the threshold was increased to $25,000. In April 2019, both Houses of Parliament passed legislation which would see the threshold jump to $30,000 and the eligible cohort expanded to include businesses with a turnover less than $50 million.
This means any asset less than $30,000 purchased by SMEs between 7.30pm (AEDT) on 2 April 2019 and 30 June 2020 would now be eligible for an immediate deduction.
How to use it to your advantage
The instant asset write-off is a clever scheme for the cashflow conscious. It means that, in the lead-up to tax time, you can buy new or used equipment and enjoy a near immediate write-down. It could give the freedom to put in motion what’s previously been on the backburner – whether that’s upgrading your front-of-house or buying more stock.
Want to purchase new equipment but need extra funds?
At Tyro, we offer unsecured business loans that give you access to funds, fast. Don’t want to be tied down to a loan? We understand. Getting approval is time-consuming; repayments are rigid; and you can’t predict your cashflow patterns from month to month making the whole process a headache. But, trust us, we get how you tick – and we have designed a loan with your needs in mind.
How are Tyro Business Loans different?
Free from hidden fees. Seriously. You’ll only pay one simple fee over the life of the loan, and never have to worry about hidden costs.
Built around flexibility. Our loans are designed to fit around you. Chances are your cashflow fluctuates from fortnight to fortnight and season to season, so our loan repayments are structured to fluctuate too. You simply choose a percentage of your daily EFTPOS takings that you wish to put towards repayments. Then, your repayments rise and fall in line with your daily EFTPOS takings (subject to minimum repayments).
60 seconds to funds. Instead of making you wait for funds, you simply need to accept the loan, provide your personal guarantee in the Tyro App, and your funds will be securely deposited into your Tyro bank account in just 60 seconds.
Ready to get going?
For more information about Tyro Business Loans, contact us on 02 8907 1716 or see if you have a loan offer in your Tyro App. You can also hear how Tyro Business Loans have made a difference to real customers here.
Want more information about the instant asset write-off?
Please visit or speak to your accountant.
Tyro provides this article for general information and educational purposes and does not take into account the financial situation or needs of any reader. The information provided must not be relied upon as financial product advice. Taxation considerations are general and based on present taxation laws and may be subject to change. You should seek independent, professional tax advice before making any decision based on this information.
Tyro loans are subject to Tyro’s eligibility and credit criteria