22nd May 2015
Hockey’s budget announcement last week had a number of interesting points in it, most notably though is the $20,000 tax deduction for small businesses. This raises a great new opportunity for your solar business, now is the time to act!
What is the opportunity?
Right now every small business or sole trader in Australia with a revenue of $2 million or less is eligible for a $20,000 tax deduction. In other words; any small business that might otherwise pay 30% tax on $20,000 profit, can now use that to buy a solar (energy storage) system, without any additional out of pocket expense!
Really?
Yes. Any small business or sole trader can purchase up to $20,000 of you and get 30% of their money back as a tax write-off for this financial year!
Can I buy anything?
Almost anything. Any asset purchase that relates to their business qualifies. Therefore any solar system, with or without batteries qualifies.
Does it have to be $20,000?
No, the business or sole trader can claim many products, as long as it doesn’t exceed $20,000.
What if the system they buy from me is more than $20,000?
They can still claim deductions but it works in a different way. Products over $20,000 are pooled together and depreciated at the same rate of 15% in the first year and 30% for every year after.
Till when can the small business put in the claim?
The $20,000 tax deduction started on May 12 and will run through to June 30, 2017.
So what do I do now?
Get in touch with your accountant and check your eligibility for the tax deduction and get the solar (energy storage) system paid for by June 30 (end of financial year). Remember, these business owners now have the choice between paying tax over $20,000 in profits or, investing it in goods for their business. Make sure you’re there when the decision is made!
For more information, please contact us.
*make sure you check with the ATO on the details of the tax deduction –
