With the approaching end of another financial year, it’s important for business owners to understand exactly what can and can’t be claimed as a tax deduction for your business. The last year has also seen several important changes to recent tax deduction allowances to be aware of.
Did you know small businesses in Australia can still claim an immediate 100% tax deduction on all artwork purchased from KAB Gallery for the business?
Did you also know larger businesses can now also claim this fantastic 100% tax deduction?
The Government’s most recent attempt to turbo-charge the Australian economy sees the fantastic Instant Asset Write-off expanded, both in value threshold and the range of businesses which can take advantage of the arrangements. The mechanics remain the same – the ATO allows you to claim an immediate 100% tax deduction at the end of each financial year on any artworks purchased for display within your business. You may decide to hang the artworks in your reception, in a boardroom, within a staff breakout area, or anywhere where they will improve your working environment. With news that this now applies to any business with a turnover of less than $50m, another 22,000 business owners are able to enjoy the same Instant Asset Write-off benefits enjoyed by small businesses for the last 8 years. Coupled with the increased threshold of $30,000 per artwork (not per purchase or per year), the revised Instant Asset Write-off is a huge benefit for business owners throughout the country.
This generous deduction falls under the ATO’s simplified depreciation rules, allowing small businesses to claim a 100% deduction rather than adhering to a regular depreciation schedule. At this stage these special rules have been extended until 2020, so you can spread your art purchases out of the next year save in the knowledge that the business portion will be 100% depreciated straight away! You are free to purchase and claim as many artworks as you wish, just as long as each individual artwork has been hung within your business before 30th June 2020 and each piece does not exceed $30,000.
Be sure to seek your own financial and tax advice to ensure your small or medium business is able to claim this immediate 100% tax deduction.
And for any queries around which artworks you should purchase to enhance your space, make sure you come to see the team at KAB Gallery!