Maximising Deductions for SBE Taxpayers: Accelerating Expenditure
Date posted: Sunday, July 7, 2013
Over the last couple of weeks we’ve looked at non-SBE (non-small business entity) taxpayers and how they can maximise deductions. Now let’s take a look at how SBE taxpayers can do the same thing.
There are two ways in which SBE taxpayers can maximise deductions, one is by accelerating expenditure and the other is by prepaying deductible business expenses. This week we’re going to focus on accelerated expenditure.
So what is accelerating expenditure?
It’s where SBE taxpayers can choose to write-off depreciable assets that cost less than $6,500 in the year of purchase. Also assets costing $6,500 or more can be depreciated at 15% (which is half the full rate of 30%) in their first year.
If your business chooses to use the SBE depreciation rule it is effectively ‘locked in’ to using this rule for all depreciable assets.
Accelerating expenditure can be a little confusing and tricky. If you have any questions call us on (03) 5940 1836 and make a booking with one of the Pakenham Taxation + Accounting experts who can help you with all your tax, finance and accounting needs.
