$150,000 of Art, 100% Deductible: The Small Business Tax Deduction
As restrictions ease throughout Australia and offices once again become frequented, coming back to a productive work space has never felt so important. Under the small business tax allowance, purchasing art for your business is 100% tax deductible. What better time to re-energise the workplace?
What’s so special about this year’s write-off?
Following a recent budget stimulus announcement, the threshold of the Instant Asset Write-off Scheme is set to soar from $30,000 to $150,000. What’s more, the deadline for making any claims is usually fixed as the end of the financial year in June. In response to the Covid-19 pandemic, this deadline has recently been extended a further six months, giving a small business a better chance to acquire and install assets. So, you can now claim back up to $150,000 spent on artwork for your small business before the extended deadline of 31st December 2020.
How do I know if my business is eligible for the tax deduction?
Small to medium-sized businesses with an annual turnover of less than $500 million qualify for the Instant Asset Write-off scheme. The Australian Taxation Office has stated that an artwork is eligible for tax deduction if it is:
- Purchased principally for a small to medium-sized business premise
- Capable of being moved
- Not be trading stock.
The ATO considers artworks as an investment and depreciating assets when bought by and for businesses. This makes purchasing art for your workspace under the Instant Asset Write-off scheme 100% tax deductible! Following the Budget Stimulus Package announced by the Prime Minister, there’s no limit to the number of artworks costing less than $150,000 to claim a tax deduction at the end of the financial year.
Sounds good! How do I start?
So, the real question here is: what artworks will you get for your business? Head over to our blog on choosing office art to kickstart a brief, or contact our complimentary art advisory for customised wisdom from the professionals.
Get started with our team for a curation to suit your office needs. We can take care of framing, transportation and hanging. Say goodbye to bare walls, and hello to workplace inspo!