Under the October 2020 Budget changes, an SBE taxpayer is broadly required to fully expense the balance of their general business pool for the 2021 and 2022 income year (i.e., the low pool value).
As such, an SBE taxpayer who incurs expenditure in relation to acquiring a depreciable asset that is ineligible for an immediate deduction (e.g the asset was acquired before the 20 October 2020 Budget changes costing $150,000 or more) will ultimately be entitled to claim an immediate deduction for the cost of the asset through claiming their closing SBE pool balance for the 2021 and 2022 income years. This means that SBE taxpayers will effectively be entitled to claim an immediate deduction for all assets that were allocated to the general small business pool.\
At M Consulting we manage your tax accounting with a proactive and transparent approach, ensuring that you always clearly understand your obligations with the Australian Taxation Office (ATO).
If you would like advice on your tax affairs, one of our experienced tax accountants in Perth can help. Contact our team today to find out what M Consulting can do for you and your business.