There’s been a lot in the news about the instant asset write-off, coronavirus stimulus and tax deductions for tradies. For those of us who are plumbers and not accountants, here are the basics of what it is, how it works and what you can claim. We’ll even throw in a few discounts of our own to sweeten the deal.
There are different rules for small business tradies (who work for themselves) and employee tradies (who work for someone else), so in this article we’re focusing on small business owners.
What is the instant asset write-off?
Part of the Federal Budget since 2015/16, the instant asset write-off allows business owners to buy assets for their business before the end of the financial year and immediately write-off their cost as a tax deduction.
How much can plumbers write-off?
While the end of the financial year has always been a perfect time to stock up on tools, as part of the recent Federal Government stimulus package in response to COVID-19 (effective until 30 June 2020), instant asset write-offs have temporarily increased from the previous $30k threshold up to $150k.
So if you need new tools or have a big investment planned to set your business up for long-term recovery, now could be the time to consider making a move to save big using the instant access tax write-off.
What type of assets can I claim?
As a guide, the ATO provides a list of examples including assets such as cars, utes, power tools, machinery, ladders, tool boxes, work lights, high-pressure water cleaners, computers, laptops and tablets etc. For plumbers specifically, this would include gear such as jetters, custom trailers, wifi cameras, locators and other plumbing tools and accessories.
You may purchase and claim a deduction for multiple business assets provided each costs less than the $150k threshold. This deduction applies to most asset purchases, whether new or second-hand. You claim the deduction in the year the asset was first used or installed ready for use.
$150k stimulus threshold ends 30 June
The current $150k asset write-off stimulus threshold ends on 30 June 2020, after which it drops right back to $1,000 and will remain available for small businesses with a turnover of less than $10 million.
SEWERQUIP EOFY package discounts to sweeten the deal
Jetter & Camera All-in-one Packages
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Drive up to 30% more flushing power from your existing jetter. For a limited time, we’re offering all 4 nozzles in one great-value package including a handy carry toolbox, spanner and one of each nozzle. Get the full 3FLOW kit for $890+gst.
10% off all Nozzles & Accessories
Order online before 30 June and save. Simply use the promo code 10OFF at checkout to get 10% off everything in our Nozzles & Accessories section including root cutting and jetting nozzles, safety equipment, nozzle kits, accessories, spare parts, hoses and reels.
For details or to grab a bargain before 30 June, give us a call on 1800 816 830, email firstname.lastname@example.org or head to www.sewerquip.com.au
NOTE: Some exclusions, limits and eligibility criteria apply
This article is general information only and doesn’t consider your personal circumstances, so it should not be considered financial advice. To see if this is appropriate for your situation it is best to get professional advice from your tax accountant or financial advisor and find out more at the Australian Tax Office (ATO) website: Instant asset write-off for eligible businesses and Tradies - Be certain about what you can claim