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EOFY: The Best Time to Buy All Your Capital Equipment

EOFY: The Best Time to Buy All Your Capital Equipment


June is the month when you gather up all those mouldy receipts from under the ute seat, and squint at the faded print. And, thanks to the $30,000 asset write-off initiative  on assets for small businesses, it’s also the best time to go to BST Online to take advantage of our huge range of tools and expert service. 


BST Group supplies a big range of quality capital equipment. We currently have a special that includes everything from Brobo Coldsaw MachinesPlate BevellersLaser Marking SystemsBandsaw Machines and Mag Based Drills. Check them all out here.

 

9 Handy Tips to Help in This Taxing Time


1 . If you buy before the end of June, you can claim the cost of your tools this year! The threshold has increased to $30,000, and has been extended to 30 June 2020.


The instant asset write-off now also includes businesses with a turnover from $10 million to less than $50 million. These businesses can claim a deduction of up to $30,000 for the business portion of each asset (new or second hand), purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020.


Businesses with a turnover of up to $10 million can also claim a deduction for each asset purchased and first used or installed ready for use, up to the following thresholds:

> $30,000, from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020
> $25,000, from 29 January 2019 until before 7.30pm (AEDT) on 2 April 2019
> $20,000, before 29 January 2019

 


 2 .
Tools help you make a living, so they are tax deductible. For most self-employed tradies, that means that probably all your tools can be written off straight away against your taxable income.


However, the rules are less generous if you’re employed by someone else. You can claim a deduction straight away for tools costing $300 or less but if the cost is more than $300, you’ll need to write off the cost over the life of the tool, which could be several years. Take care if you purchase a set of tools – you can’t claim each tool individually so unless the cost of the set is less than $300, you’re looking at writing off the cost over a few years.


Just remember to keep those receipts in good nick – or get the receipt emailed to you!

 


3.
If you are required to transport your tools from site to site, then you can claim car expenses and running costs (like petrol and servicing).


If you run a business, you can use the $30,000 instant write-off tax break, provided of course the vehicle costs less than $30,000. If it costs $30,000 or more, you’ll need to write it off over the life of the vehicle.


If you’re an employee, you can claim depreciation on the vehicle over its life, but only if you keep a logbook of your work/private use. Your logbook can also be used to work out your various other work-related vehicle deductions, such as the cost of fuel, servicing, etc.


Alternatively, if you travel less than 5000kms, you can simply claim a set 68c/km allowance for every business business kilometre traveled


Remember, you can’t claim for the costs of traveling from home to work in your vehicle, unless your employer requires you to transport heavy tools which can’t be stored at work.


Don’t forget to put those receipts in a safe place and log your travel times.

 


4.
Phone bills can explode when you are on site all day, so claim all your business calls. Don’t forget to separate your private calls from your business, or perhaps get a phone that is only used for business.

 


5.
Fines can be an annoying part of working life… but, unfortunately, they are NOT tax deductible.

 


6 .
If you work outside, even the sun can save you some extra coin... sunglasses, sunscreen, hats, boots and pants can be claimed as ‘sun protection’. So get Slip, Slop, Slap, Saving!

 


7.
Went to a bean-counter last year? Don’t forget to claim the cost of last year's lodgement from your tax agent or accountant!

 


8.
Get all the latest news and deductions straight from the horse’s mouth: the ATO. Fun reading!

 


9 .
Go online to BST Group to take advantage of our huge range and expert service. At BST Group we will help you maximise your performance and your returns!

 


Mike Hepburn

We are the Tool Experts, Not Tax Experts, so please go to your Accountant or Tax Agent for further advice.

All editorial matter published on this website represents the opinions of the authors and do not necessarily represent official views or policies of the BST Group.

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