nice set of tools. Dowel and screw, screwdriver, pliers, pencil

If you own or run a small business, one of the best tax breaks is the instant asset write-off. This allows you to buy items of capital equipment and then immediately write off the cost against current year profits.

Whilst now might not seem like the best time to be spending money on a store refit, the tax break has now been made even more attractive for a limited time meaning that for those retail businesses with a cash balance and a plan to freshen up their retail presence, there has actually never been a better time to take the plunge.

The government has just announced that the dollar limit for qualifying capital assets has gone up to $150,000 with effect from 12 March 2020 (it was previously $30,000 from 2 April 2019), meaning that any item costing up to that limit can be written off straight away. This applies to all capital purchases through until 30 June 2020.

Better still, the scope of the instant asset write-off has been expanded meaning that thousands more Aussie businesses now qualify for the write-off. From 12 March 2020 through until 30 June 2020, businesses with an aggregate turnover of up to $500 million can qualify for the scheme (previously, only businesses with a turnover up to $50 million qualified).

If you’re planning to give your small business a boost, this is a great way to tax effectively fund the expansion and efficiency of your business and, at the same time, reduce your taxable profits. So, what are the top assets that many retail businesses use the tax break to acquire?

If you’re in the retail trade, the instant asset write-off is great for tax effectively building a retail environment that will wow your customers.  Amongst the items you could look at claiming, think about the following:

  • Cash registers and other POS devices
  • Delivery vans
  • Store fittings and fixtures
  • Computers, laptops and tablets
  • In store security systems
  • Staff room fit-outs