If you want to know more about websites, or are interested in having a chat about a website for your business, contact Doug on 0417 963 355 or Michelle on 0422 448 018.
Did you know a website is a depreciable asset?
Depreciating assets are often thought to be physical assets, however this is not always the case. Building a new website or developing an existing one is also considered a depreciating asset.
In 2015 the Australian Taxation Office introduced the instant asset write-off for assets purchased under $20,000.
This meant that businesses with a turnover less than $10 million could choose to apply the small business concessions rules and write off qualifying business assets that cost $20,000 or less (excluding GST). This incentive is said to expire 30 June 2018.
While many people have been trapped into thinking the Australian Government is going to give them a free $20,000, this is not the case.
The immediate deduction of business assets (costing less than $20,000) creates a tax advantage by significantly reducing a businesses profits, and consequently their taxable income – simply meaning you will pay less tax than if you chose to depreciate the asset under general depreciation rules. Immediate also means ‘in the first year’, not getting cash back straight away.
Should you need help in assessing whether your business is eligible to use the small business concessions and the associated tax benefit you may receive, feel free to contact the BHR Papalia office in Bunbury on 9791 5877.