What to buy to get the $20,000 small business tax break
If you're a small business owner you may now have an extra year to benefit from the $20,000 asset write-off scheme, but with June 30 fast approaching you should get in quick to ensure you make the most of the tax perk this financial year.
New research by Officeworks and H&R Block has revealed that 78% of Australia's small business owners don't fully understand the $20,000 tax break, with 67% of them not making the most of the opportunity in the lead-up to June 30.
Essentially what this means is that if you're a small business you are able to claim an immediate tax deduction for all assets acquired for use in the business up to a value of $20,000.
But what exactly can you claim?
The research found that a quarter of those surveyed admitted to being unsure of what is covered in the $20,000 tax break and only one in 10 correctly identified items that can be claimed as an instant write-off.
You can use it for anything from computer equipment to a coffee machine for the office kitchen to solar panels for the office roof or even a car.
And you can buy multiple items and claim a total of $20,000.
If technology items are on your list Officeworks' tech expert Trevor Long has compiled a list of the top products that you can purchase and maximise the $20,000 tax break by the June 30 deadline.
- Point of sale
As a small business owner, you probably don't think about your point of sale (POS) systems as much as you should. For smaller businesses or businesses constantly on the move, the PayPal Here tap-and-go mobile card reader and the Square contactless and chip card readers allow you to accept credit card payments with ease.
- Mobile phones
Are you or your staff working from older mobile phones? Or are you stuck in the middle of long-term mobile contracts? EOFY is the ideal time to look at upgrading to a new smartphone by purchasing it outright without paying exorbitant costs to your telco.
Anything from the top-of-the-line Samsung Galaxy S8 or iPhone 7 down to the lower priced options such as the Oppo R9S, Huawei unlocked GR5 and HTC Desire 530 could be claimed under the $20,000K tax break for SMEs. Buying outright now could mean savings on your tax as well as on those monthly mobile payments.
- Computer monitors
Sure, your computer is still working fine but adding a second screen or updating your current monitor will completely refresh your team's workspaces and increase efficiency.
- Laptops
Is anyone in your office complaining of a slow laptop? Or perhaps there are complaints from staff who would like to move from a desktop to a laptop to work remotely? Why not take advantage of the instant tax write-off and purchase new laptops that could improve the productivity of your team.
Performance doesn't mean expensive. You can get a high-performance HP laptop with an Intel core i5 processor for less than $700. If you're looking for more flexibility, a convertible laptop allows you to easily switch between laptop and tablet, giving you the best of both worlds without compromising productivity. A bestseller for Officeworks is the Lenovo Yoga 510 14in Core i5 convertible laptop. Identifying your needs, such as the size, storage and speed, will help you choose the best option for your business.
- Printers
Unfortunately, many home-based and small office businesses don't give printers the attention they deserve when it comes to deciphering quality and brands. These days there are a couple of fantastic options for ink-tank-based printers, instead of ink cartridges, which will save you more in the long-run. Epson's Expression EcoTank wireless inkjet and Canon's Pixma Endurance Inkjet Multifunction G4600 cost more up front but the ink will last a long time.
- Networking
If you're transferring files between computers in your office, you might not realise that there is some important network hardware required to make that fast and efficient connection. If your computers are hard-wired into your network, the network "switch" could be a traffic bottleneck. A faster switch with gigabit capacity replacing an older 10/100 switch could speed things up tenfold! My pick is the TP-Link 8 port Gigabit Smart PoE Switch.
Likewise with your wi-fi-connected devices there are various solutions available today such as the Netgear Orbi WiFi system kit. It provides great range using satellite extenders as well as fast network speeds, which means better transfer times.
- Smart technology
Upgrade your business security by keeping an eye on your office or shop with a modern and simple-to-install internet-connected camera. The Netgear Arlo or D-Link Omna 180 HD camera records continuous video and provides motion alerts so you can protect your home or business throughout the year. There are now 100% wire-free products that are easy to install and save the surveillance videos in the cloud for remote access wherever you are.
- Accessories
And while you're filling your trolley this EOFY, think about a few of the smaller things for around the office that will help your business run more efficiently throughout the year.
Having spare hard drives for taking big files or presentations off-site are often necessary for small businesses. Hard drives are also great for backing up work files and ensuring everything is protected should anything happen to your PC. My pick is the Samsung 250GB portable solid state drive, which is extremely lightweight and compact - great for taking on the go.
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