To save small business time and money, the Australian Government is reducing red tape with Simpler BAS – the easier way to complete your Business Activity Statement reporting - and has extended the asset write-off period.
Small businesses only need to report:
G1 Total sales
1A GST on sales
1B GST on purchases.
The following GST information is no longer required:
G2 Export sales
G3 GST-free sales
G10 Capital purchases
G11 Non-capital purchases
Simpler BAS does not affect how other taxes are reported (eg PAYG income tax instalments or PAYG tax withheld), or how often you lodge your BAS.
Watch the explanatory video here.
Immediate deductions up to $20,000 The $20,000 instant asset write-off has been extended to 30 June 2019.
This means you can continue to claim the cost of new or second-hand assets that are less than the threshold of $20,000. What does it mean for your business?
If your business has a turnover of less than $10 million, you can instantly claim the business portion of most depreciating assets that cost less than $20,000 each.
You can claim the deduction through your tax return, in the year the asset was first bought and used or installed ready for use.
Assets of $20,000 or more can be put into a small business asset pool where you can claim a proportion of the amount as a deduction each year. More info here.
On 29 January 2019, the Prime Minister announced that the government will introduce legislation to increase the $20,000 instant asset write-off threshold to $25,000 from 29 January 2019 until 30 June 2020. This proposal is not yet law.
Learn more about Simpler BAS and other small business initiatives here.