In the 2015 Budget, the Government announced a new tax deduction for assets less than $20,000. This means that from 12th May 2015 until 30th June 2017 your small business will receive even more than just the standard reductions in your energy and maintenance costs by upgrading to LED’s.
Is the tax deduction for my company?
As long as your company has an aggregated turnover of less than $2 million, and is a registered business with an ABN, you might be eligible to receive the government’s new tax deduction for up to $20,000. As long as each asset you buy is related to your business and is valued below $20,000, you will be able to make the tax deduction claim on assets like LED’s. For small businesses this is a great benefit, as you can claim the deduction immediately instead of the prior $1,000 deduction over a number of years.
Claiming an LED upgrade as tax deduction.
Upgrading from the old inefficient fluorescent and incandescent lights to quality LED’s already has a large set of benefits. These include lower energy costs, dramatically longer lifespans, almost non-existent maintenance costs, and greater cost effectiveness with Energy Saving Schemes etc.
With the new possibility to claim the whole upgrading process as a tax deduction, the entire transition will reap huge financial benefits.
Growing jobs and small business
With this budget implemented by the Treasurer, the Government is taking the initiative to help generate more jobs and help small businesses prosper. The new incentive is attempting to revive investments and create economic growth throughout the country with the dramatic increase in tax deductions by 20 times the original amount.