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Instant asset write off

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Newbie

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So my wife just started a side business and we really want to buy our own laser machine (less than 10k) however we haven't had the money to do it. With this instant tax write off thing, that doesn't affect us until tax time does it where we can claim 100% of the machine for business use? Correct? What about if we could get on finance or something, how does it work then?

Also say the machine costs us 8k, come tax time does she get to claim that full 8k back or is it like 30c to the dollar she can get back from it? Or do I just have no clue what I'm on about 😂

Thanks! Sorry for the dumb questions, this is new to both of us!
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Taxicorn

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@Ryan07 

 

Instant asset write off does not give you the money back but it reduces your taxable income by that amount.

 

So at best you are receiving your marginal tax rate x asset cost.

 

You could end up, depending on your income, having a 'loss' which you would need to carry forward until you can use it in future years

 

If you borrow money then the interest part would be claimable as a business expense.

 

2 REPLIES 2
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Best answer

Taxicorn

Replies 1

@Ryan07 

 

Instant asset write off does not give you the money back but it reduces your taxable income by that amount.

 

So at best you are receiving your marginal tax rate x asset cost.

 

You could end up, depending on your income, having a 'loss' which you would need to carry forward until you can use it in future years

 

If you borrow money then the interest part would be claimable as a business expense.

 

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Newbie

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Okay makes sense! Thanks!