When was the last time that you took a few minutes out of your busy day to review your tools and equipment? Do you tend to wait for that cell phone to take its last breath before buying a replacement?
Take a look at those assets. If you know that you will be requiring a replacement in the short term, now could be the time to buy!!
From 17th March 2020 to 16th March 2021, the government had passed legislation temporarily increasing the low-value asset from $500 to $5,000 (excluding GST). This means that the full value of the asset is immediately expensed, rather than depreciated over multiple financial years. This may be beneficial to your business at tax time, especially during this uncertain time of COVID19.
From 17 March 2021, the low-value asset threshold has a new permanent value of $1,000 (excluding GST).
Please reach out to your Accountant, Bookkeeper or us if you need assistance. We are all in this together.