IX Advisory

🚨 Important Update for Small Businesses! 🚨

Instant Asset Write-Off Reverts to $1,000 for FY 2024-25

The government extended the $20,000 instant asset write-off for businesses with a turnover under $10 million through 2024-25, allowing you to immediately deduct the full cost of eligible assets under $20,000. But, in a last-minute change in Parliament, this concession was unexpectedly removed! 😞

Without it, the threshold drops back to just $1,000. This leaves many small businesses uncertain about the tax treatment of their asset investments this financial year. 🧐
Stay tuned for more updates and make sure to consult your accountant! 💼

🔍ATO Focus Area: Why Division 7A Matters for Small Business Owners

If you're running a small business, you might have heard the term "Division 7A" thrown around, but what does it actually mean for you?

Simply put, Division 7A is a tax rule that affects how money is taken out of a company. If you, as a business owner or director, take money or assets from your company for personal use (like a loan or using company property), Division 7A ensures that it is taxed properly.

Why is this important?

If you get it wrong, you may expose yourself to tax penalties. So, whether it's a loan, dividend, or any other payment, make sure you're on top of Division 7A to avoid nasty surprises later!

Want to learn more about how Division 7A works? Please get in touch!