Small business has begun sniffing around for what to spend its money on after treasurer Joe Hockey announced an instant $20,000 asset write off in Tuesday night’s budget, according to a top Sydney accountancy firm.
Michelle Devir, director at Yoav Mark Lewis Chartered Accountants in Bondi Junction told Business Insider that they were already seeing a jump in the number of clients calling for advice on what to buy and when.
As well as asking about office equipment and furniture, Devir says small business is also looking at cars and even artwork.
However, Devir sounded a warning to business owners about going out and spending company money just for the sake of it, with a reminder that at best, business is getting a 30% discount on the cost of what they buy.
“If they need to buy business related assets less than $20,000 then they should buy them either before 30 June, 2015 or after then, depending on their expected profit,” she said.
“But there is no point buying something they don’t need just to get approx 30% of the purchase back by way of a reduction in their tax liability.”
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