The Federal Government has confirmed it’s extending its highly popular tax write off for equipment purchases valued up to $20,000. Farmers and other rural businesses were highly supportive of the measures which were initially announced in the 2015-16 budget, but they only applied to businesses with turnover up to $2 million.
Now the scheme is available for businesses worth $10 million per year. It allows small business to claim an immediate deduction for each asset purchased costing less than $20,000 until 30 June 2017. The tax write-off bonus has come at an ideal time with the low Australian dollar and the end of the 2015-16 financial year.
Trans Tank International General Manager Ross Buchner said many farmers and agribusiness operators were making smart long-term decision by investing in equipment to guard against natural disasters and drought. This includes water tanks and firefighting equipment.
“With drought conditions plaguing much of south eastern Australia, maintaining high-quality water cartage equipment is a move that will pay off now and into the future,” Mr Buchner said. The tax concessions also encourage business operators to invest in equipment that can boost productivity and efficiency. “Whether it’s the new range of field sprayers, our diesel tanks and refuelling trailers or other agricultural equipment – everything at TTI is designed to be versatile and give our customers the edge in the field.”
Who can get it?
Businesses, including primary producers, which turn over less than $10 million are eligible for the tax deduction.
How does it work?
Businesses purchase the items outright and then get the money for the item back as a tax write-off.
What can I purchase?
Any item that relates to your business or farm. For example, this could include a diesel transport trailer or spray equipment or even a free-standing diesel fuel tank.
How long do I have to claim?
The $20,000 tax deduction goes through to June 30, 2017. It is scheduled to go back to the original $1000 threshold after that time.