New Tax Deductions for Small Businesses

tax deductions for small businesses

Joe Hockey delivers early Xmas present to Fit-out Contractors

Joe Hockey delivers early Christmas present via tax deductions for small businesses.

Small businesses with a turnover of less than $2m can now claim an immediate tax deduction when purchasing plant and equipment valued under $20,000.

This new tax break will deliver an early Xmas present to fit-out contractors who specialise in restaurant and small office refurbishments.

I was expecting a tax break but was surprised by the quantum of the tax break. Depreciation Quote Schedule

I think $20,000 as an immediate tax deduction for individual items is a huge amount and an incredible incentive to bring that fit-out forward.

Fit-out contractors now believe in Santa Claus and he’s taken the form of Joe Hockey.

Washington Brown recently refurbished our office for a cost of $202,000 and were able to claim $35,000 in depreciation in the first year. If we’d carried out the same fit-out today our first year depreciation would’ve been over $123,000. That’s a HUGE difference.

Quantity Surveyors are experts in breaking down the overall construction cost into individual items and now has never been a more appropriate time to do this.

There are four main points to consider:

  1. Small businesses should ensure a detailed report of any fit-out costs be carried out.
  2. When acquiring any new asset, small businesses should try to keep the costs below $20,000.
  3. This generous bonus has an expiry date of June 30, 2017.
  4. Assets costing over $20,000 can still be depreciated but not claimed as an outright deduction.

Some examples of what may qualify for an immediate tax deduction include carpet, desks, blinds, work stations and a lighting upgrade.

Now has never been a better time to upgrade that office or refurbish your restaurant.

What Should You be Claiming on Your Rental Property?

Claiming on Your Rental Property

Rental Property Tax Deductions

Claiming On Your Rental Property

In any rental business, the expenses don’t stop upon acquiring whatever it is that you are renting out. In car rentals for example, the owner of the car rental business continues to pay for other costs to keep the business running, such as maintenance costs, mechanical and cleaning services, and the like. The same goes for the property rental business. Depreciation Calculator

Rental property owners are well aware that whether they are renting out a studio flat, a three bedroom apartment, or a house, incurring additional expenses is inevitable in times when the property is rented out or is made available for tenants. What are these expenses to begin with?

Of course, when you put up an advertisement to reach interested tenants, there is a cost. The ongoing insurance payment that you shoulder as the property owner is an obvious cost as well. Aside from that, you have to pay compulsory charges such as taxes, interests on loans, legal expenses, and fees for the property manager.  Then you have the cost of maintenance and repairs. Yet, there is still a multitude of miscellaneous expenses that can be incurred in renting out a property for business.

Why is this knowledge important? No one enters a business venture without the intention of gaining profit while putting out less, and if you agree with this, then here’s some good news for you: There are certain rental expenses that you can claim a tax deduction for! This means that you earn more savings in taxes. Now, isn’t that a good thing?

You are probably excited by this information and want to find out more on how to go about claiming deductions for these expenses as well as the type of expenses eligible for deduction claims. Our next posts will discuss that in further detail. Stay tuned for more updates!

If you want a quote for a depreciation schedule click here – or use or free online tax depreciation calculator to estimate your savings.