Why is it so Useful to Australian Business?
Australia’s natural conditions and environment make it ideal for solar energy production, but what is it about this renewable energy source which makes it such a viable option for businesses?
In addition, The 2015 Federal Budget included a proposal to introduce tax concessions for small businesses who convert to solar power. All small businesses will get an immediate tax deduction for any individual assets they buy costing less than $20,000. (Currently, the threshold sits at $1,000).
This $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they wish. These arrangements start Budget night and continue until the end of June 2017. Increasing the depreciation threshold will mean improved cash flow for small businesses. It will encourage them to bring forward investment in the assets they need to grow their business and service their customers.
Any assets over $20,000 can be added together (‘pooled’) and depreciated at the same rate. These assets are depreciated at 15 per cent in the first income year, and 30 per cent per year thereafter.
If the value of the pool is below $20,000 it can be immediately deducted until the end of June 2017.
Source reference for the above: http://www.budget.gov.au/2015-16/content/glossy/sml_bus/html/sml_bus-08.htm