For those watching after Budget 2024, the Instant Asset Write Off has been extended for another 12 months. Same rules will likely apply as in this video.
Ok so as a Plumber I will be getting a Ute for $40k in August 2023. I will be using it for 100% of the business. Can you explain to me how much I would get back on tax?
As explained in the video, if you buy an asset after 1st July that is over $20K, it will likely go into the small business pool. This would give you a $6K tax claim in the first year. You would then receive tax savings based on your marginal tax rate. I'd highly suggest chatting to your accountant about this.
Hey Ethan, question re this topic. If I bought a car for 60k in 20-21. Did the 100% instant write off. Then in 22-23 sold the car and bought a new car for 90k can I claim the 100% instant write off again? Or is there a rule where I can only claim the difference of the two cars? Cheers Pat
Well you'd have to include the sale of the previous car. There is also a car limit, so unless you are excluded from that, you can't claim the full $90K. Talk to your accountant about it, they should be able to explain further.
Hi Ethan, May i pls ask what the tax rate 34. 5 % is from? My new vehicle will be ready to pick up next week. I am trying to have some idea how the TFE works?
![Everyday Tax Write Offs for Small Businesses! [24 hr Challenge]](http://i.ytimg.com/vi/vtbh6QJBqzs/mqdefault.jpg)
For those watching after Budget 2024, the Instant Asset Write Off has been extended for another 12 months. Same rules will likely apply as in this video.
Thanks
Wow thank you so much!
Ok so as a Plumber I will be getting a Ute for $40k in August 2023. I will be using it for 100% of the business. Can you explain to me how much I would get back on tax?
As explained in the video, if you buy an asset after 1st July that is over $20K, it will likely go into the small business pool. This would give you a $6K tax claim in the first year. You would then receive tax savings based on your marginal tax rate. I'd highly suggest chatting to your accountant about this.
Hi Ethan, what is the useful life of a motor vehicle? i.e. how long is it deprecated for? And what happens at the last year, is it written off?
Typically 8 years but depends on the type of vehicle. It will depend on the method you are using. Potentially could be using the Small Business Pools.
@@EthanRooshock thank you!
No worries!@@sam54no
Hey Ethan, question re this topic. If I bought a car for 60k in 20-21. Did the 100% instant write off. Then in 22-23 sold the car and bought a new car for 90k can I claim the 100% instant write off again?
Or is there a rule where I can only claim the difference of the two cars? Cheers Pat
Well you'd have to include the sale of the previous car. There is also a car limit, so unless you are excluded from that, you can't claim the full $90K. Talk to your accountant about it, they should be able to explain further.
Ok so if i buy a vehicle for 12000 used directly for business purposes its instantly a tax write off
Yeah that would be correct in most cases. Definitely would advise seeking personalised advice though.
Hi Ethan,
May i pls ask what the tax rate 34. 5 % is from? My new vehicle will be ready to pick up next week. I am trying to have some idea how the TFE works?
Tax Rate of 32.5% plus the 2% Medicare Levy.
Hi Ethan,
Just wondering can you claim this tax on a business vehicle which is purchased and currently being payed for using finance/loan?
Claim what tax sorry?
Thank u :)
No worries!
if i buy a new van before the 30th june 2023, can i claim the instant tax write off?
Do you meet all of the things I talked about in the video?
Yes you Can Asset should less than $150K
@@praveenv629 They need to make sure they are using it for business etc.
Can i write off entire 3k laptop?
Depends, is it being used for your business? When was it purchased? etc.
@@EthanRooshock yes 100% business use. purchases, june 2024
@@doug774 It would likely be under the instant asset write off then, but definitely seek personal advice or check with the ATO
@@EthanRooshock Great thank you
@@doug774 No worries!
So do you only get tax u pay amount off vechile price . You dont get back full amount spent on vehicle ? Sorry rookie here lol
You get a tax deduction. In essence, this saves you tax at your tax rate.
What happens if you buy a car for 20 000$
What do you mean?
I thought they write the whole 20k off , but think I worked it out still just 30% off the 20k
@@SuperMarks4 I'm still not sure what you mean sorry. Do you mean if it is exactly $20K?
Yes I think that's what he meant
Bro are you related to Damien
Who is Damien