Tax write-off for business

Spitwater Products May Qualify for a $150,000 Tax Deduction

If you purchase Spitwater products for your business up to $150,000 in value and you have an annual turnover of less than 500 million dollars, the products could be 100% tax deductable.

Here is an exert from the ATO's website regarding the simpler depreciation rule for business:

Simplified depreciation rules – instant asset write-off

There have been changes to the instant asset write-off.

From 12 March 2020 until 31 December 2020, the instant asset write-off:

• threshold amount for each asset is $150,000 (up from $30,000)
• eligibility has been expanded to cover businesses with an aggregated turnover of less than $500 million (up from $50 million).

This is a further change to the one that occurred on 2 April 2019 when the instant asset write-off eligibility was expanded to include businesses with a turnover from $10 million to less than $50 million.

So, if you are a small business (with a turnover of less than $10 million) and you have chosen to use the simplified depreciation rules, you must use instant asset-write off.

From 1 January 2021, the instant asset write-off will only be available for small businesses with a turnover of less than $10 million and the threshold will be $1,000.

If you are not using the simplified depreciation rules for small business, the general depreciation rules must be used.

To find out more about how instant asset write-off works and the thresholds, refer to Instant asset write-off for eligible businesses.

See also:

• Simpler depreciation for small business
• General depreciation rules

Backing business investment – accelerated depreciation

From 12 March 2020 until 30 June 2021, the Backing business investment measure provides a time-limited (15-month) investment incentive to support business investment and economic growth by accelerating depreciation deductions. The key features of the incentive are as follows:

• The benefits are either    
  • if you are using the simplified depreciation rules for small business, you can claim 57.5% of the cost of the asset (for those assets that cost more than the instant asset write-off threshold) in the first year you add the asset to the small business pool
  • if you are not using the simplified depreciation rules for small business, you can claim a deduction of 50% of the cost or opening adjustable value of an eligible asset on installation. Existing depreciation rules apply to the balance of the asset’s cost.
• Eligible businesses — businesses with aggregated turnover below $500 million.
• Eligible assets — new depreciating assets (for example, plant, equipment and specified intangible assets, such as patents). The assets must be first held, and first used or first installed ready for use for a taxable purpose on or after 12 March 2020 until 30 June 2021. Some exclusions apply.

For more information on if your business qualifies for these new tax depreciation benefits, visit the Australian Taxation Office website.

Pressure Washers, Vacuum Cleaners, Scrubbers, Driers, and Space Heaters

It doesn't matter if you need a pressure washer ( high pressure cleaner ), a commercial vacuum cleaner, a floor scrubber or one of our Space Heaters, these products and accessories all should qualify for the 100% tax deduction if the product is less than $150,000. 

Check with your accountant to confirm the regulations regarding the simpler depreciation for business rule, and view the products page to see what is available to take advantage of the tax break.

For more information on pressure washers and other products, contact Spitwater today on 1800 172 005