Yes, you can!
The Government wanted (and still wants) to stimulate the economy by encouraging businesses to spend, spend, spend.
If you purchase an asset between 17 March 2020 between 16 March 2021 that costs less than $5,000, it can be treated as an expense and offset fully against your 2021 taxable income. This even applies to vehicles if its price is less than $5,000.
Previously, assets that cost more than $500 needed to be capitalised. This means items such as laptops and mobile devices, office equipment and furniture, building fitout, security systems, commercial kitchenware, vehicles, etc, were added to the fixed asset register and depreciated. The cost was therefore written off over a number of years.
Now - if you purchase these items for less than $5,000, the cost is deducted immediately from your taxable income. The table below shows examples of different assets and the potential tax savings (at a tax rate of 28%).
From 17 March 2021, the threshold changes to $1,000. While it's better than the previous $500 restriction, it wouldn't even cover the cost of most mobile phones.
So if you're thinking about buying or upgrading laptops, tablets, smart phones, software, office furniture and equipment or anything else business-related, seriously consider doing so before 16 March 2021.
If you've mistakenly recorded these transactions as assets, we'll make the correction in your financial statements. No need to do anything yourself - just leave it to us.