There has been much discussion in the media regarding equipment/vehicle purchases costing less $20,000 as a great tax deduction for small business. We agree, however, there is also a downside to this initiative. In the next financial year, there will likely be less depreciation claims if no additional asset purchases are made in the next financial year. This is because the asset was completely written off in the first year. This means that small business owners need to be aware that additional funds may need to be put aware because the next year's tax bill will likely be higher with fewer depreciation deductions to reduce taxable income. We recommend performing a tax estimate during the next financial year to determine the amount of additional funds required to be put away. Please contact Jamieson Accounting Services on 5597 3444 to have your tax estimate prepared on your behalf or to discuss this issue further.

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