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.
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.