How the Instant Asset Tax Write-Off Could Benefit Your Retail Business

The April 2019 Federal Budget announcement will unlock new immediate strength tax write off opportunities for Australian merchants.

(Article published: 10th April 2019 -- after the Australian Government 2019 Budget statement on 2nd April 2019)

As we come into the EOFY period, there is a great deal of admin to keep you occupied including accounting processes and stocktakes. However, it's also an important time to determine whether or not to benefit from the Government's instant tax write-off before the end of this fiscal year.

What's the Instant Asset Tax Write-Off Scheme?

The Instant Asset Tax Write-Off scheme enables eligible Australian companies to buy assets and receive an immediate tax deduction, instead of having to write them down over the subsequent years.

On 2nd April 2019, the Australian Government Budget declared:

  • The qualified business turnover threshold for obtaining the write-off was increased from $10 million to $50 million.
  • The quantity which may be written off has become increased up to a total of $30,000 per advantage (it may be used multiple times for a number of assets).

The most recent announced changes are a big win for companies. Over 370,000 companies have already made claims. The Government states 3.4 million will currently qualified for the write-off now that the turnover threshold was expanded.

What are the changes in this new strategy?

There have been a number of changes to the amount which may be claimed within the space of the fiscal year. The Most Recent amendments imply there are now three tiers for the 2019 income year:

  • Tier 1: $20,000 threshold for depreciable assets acquired before 29 January 2019
  • Tier 2: $25,000 threshold for assets obtained between 29 January 2019 and 2 April 2019
  • Tier 3: $30,000 threshold for assets obtained between 2 April and 1 July 2020

Eligible assets can represent a broad assortment of'items'. POS Systems and eCommerce software can be eligible if they are in use, or installed and ready to use, in the present financial year. There are quite a few exceptions and rules which you want to know about and so it's essential seek the help of a tax professional.

Sources

https://www.connectpos.com/pos-review-connectpos-vs-lightspeed-retail-pos/

https://www.connectpos.com/pos-review-connectpos-vs-shopkeep-pos/

https://www.connectpos.com/pricing-options-for-different-pos-systems/

What are the opportunities for Australian retailers?

But, there are some clear new opportunities for qualified Australian retailers:

  • For retailers with an aggregated turnover of less than $10 million, there's the chance of an increased allowance for one to invest in new assets prior to 30th June 2019, given the qualified amount is currently $30k.
  • For retailers with an aggregated of $10 to $50 million, this is a brand new opportunity that didn't exist before the Australian Government Budget Announcement. Firms in this class can now write-off around $30k prior to the end of 30th June 2019.

'In-use' or'installed ready to use' means act quickly for claims prior to June 30th!

ConnectPOS' cloud POS System or Shopify eCommerce applications can drive faster growth across physical and online channels, and are eligible under the immediate tax write-off scheme. This means you ought to invest in those systems before June 30th 2019 to maintain an immediate tax deduction in the current financial year.

Important: as stated previously, there's a need to demonstrate some promised assets are'in-use' or'installed ready to use' by June 30th for them to qualify for the write-off from the 2019 year. With our specialist implementation approach, we have the ability to install within the necessary time-frames for those retailers that enquire soon. However, it's vital that you seek the help of taxation professional if you're looking to benefit from the instantaneous asset tax write off. This report is general in nature and shouldn't be taken as financial or taxation advice for your particular business.

See also

https://www.connectpos.com/pricing-options-for-different-pos-systems/

https://www.connectpos.com/6-must-have-pos-integrations/

https://www.connectpos.com/pos-review-connectpos-vs-vend/

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