Tax Time – Now Is The Time To Stock Up For Your Business

As the end of financial year is fast approaching, now is the perfect time to stock up and invest in high quality tools. Particularly if you’re a small business owner, it is important to know what this means for you.

If you own a small business, you can immediately deduct the business portion of the cost of eligible new or second-hand depreciating assets purchased for your business from 7.30pm AEDT on 6 October 2020 until 30 June 2022.

For assets purchased before this period, you can immediately deduct the business portion of the cost of eligible new or a second-hand depreciating asset where it costs less than the relevant threshold amount.

Claiming deductions this tax time

What you can claim depends on whether you’re an employee tradie or a small business (sole trader, partnership, company or trust).

To claim business expenses:

• the money must have been spent for your business (not a private expense)
• if it is for a mix of business and private use, only claim the portion that is related to your business
• you must have a record to prove it.

Buying tools for work

You can claim a deduction for most costs you incur in running your business – including certain assets. If buying assets for your small business, you can immediately deduct the business portion of the cost of an asset under temporary full expensing or instant asset write-off (if the asset cost less than the relevant threshold).

For more information on what you can claim for your small business, visit: https://www.ato.gov.au/general/tradies—be-certain-about-what-you-can-claim/

And the best place to shop for all your woodworking needs is www.carbitool.com.au