Act Now To Secure These Business Deductions

Small businesses may want to act now and bring forward their capital purchases if they still wish to utilise the instant asset write-off of $6,500 or the $5,000 motor vehicle write-off in 2013-14.

Businesses thinking of acquiring a depreciating asset costing less than $6,500 or a motor vehicle may want to do so to take advantage of these concessions while they still exist.

The capital allowance concessions available to small businesses are as follows:

■an immediate tax deduction available for business plant and equipment purchased with a cost of less than $6,500, and

■a small business that purchases a motor vehicle for business use is entitled to an immediate deduction of the first $5,000 value of the motor vehicle plus 15% of any additional value.

■The remaining value is allocated to the small business general pool with a rate of 30% to be claimed in subsequent income years. These concessions are only available to businesses that have a small business pool.