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Changes to Small Business Concessions in 2012–13

ABN Latest News

There are a number of important changes for small business entities in the 2012–13 income year that ABN thinks you and your clients should know about.
 
Small businesses can now claim (write-off) an outright deduction for most depreciating assets purchased for less than $6,500 each – an increase from the previous amount of $1,000. For example, Annette buys a $5,900 camera and a $4,500 high resolution printer exclusively for use in her photography business. As each cost is less than $6,500, she can claim deductions of $5,900 for the camera and $4,500 for the printer in the 2012–13 income year.

Small businesses that buy a motor vehicle for use in their business can claim an immediate deduction of up to $5,000. The remainder of the cost is deducted through the general small business pool at 15% for the first year and 30% for later years.

Both the long life and the general small business pools have been consolidated into a single pool which is deducted at 30%.

The entrepreneurs’ tax offset (ETO) has been abolished from 2012–13.

Category
ABN
Published
12 Dec 2012
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