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Some changes in the tax laws to be aware of:

Some changes in the tax laws to be aware of:


Small asset write off 
If the asset purchase  costs less than $6,500 you will obtain a 100 per cent write off in your 2012/13 tax year. Faster write off for tax translate to cash flow benefits as you are able to bring forward deductions which reduce your tax bill. 

 Motor vehicles 
 Small businesses will be entitled to additional one-off depreciation deduction of $5,000. The remainder of the purchase cost is depreciated as part of the general small business pool at 15 per cent in the first year and 30 per cent in later years. The positive aspect of this initiative is that it applies to both used and new motor vehicles. If a tradesman purchases a ute that costs less than $6,500 after 1 July 2012, which is used for business purposes only, then it will be able to claim full amount as the vehicle is under the small asset threshold. If the motor vehicle cost say $14,000 the business could deduct $6,350 in its first year ($5,000 + 15% x ((100% x $14,000) - $5,000) = $6,350.

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