Does my tractor go to the small business pool or the instant asset write-off?
The instant asset write-off applies below a cost threshold set by the tax office, read at build time and dated because it moves. A six-figure tractor is at or above the limit, so it goes to the small business pool instead: a first-year rate on the cost, then a diminishing rate.
How do you use this in your decision?
Put your own quote, loan terms and lease terms into the sheet on the home page. It shows the three options in today dollars, the deduction timing year by year, the GST credit quarter and the machine's value at the end, then names the cheapest on your figures and by how much. Every rate, residual and effective life is labelled an assumption for your accountant.
Which rules sit behind the tax treatment?
The tax treatment of the decision is the work of a registered tax agent. See the rules that apply to you for the held obligations under the Tax Agent Services Act 2009 (Cth), cited to their clauses.
Frequently asked questions
Which figure does the sheet use for the threshold?
The threshold held in the dated tax office rules table that ships with the page, together with the pool rates and the effective lives. The table carries the day it was read, because the limit and the rates move, and your accountant has the last word.
Does choosing the pool change which option is cheaper?
It can change the year the deduction lands in, which changes its value in today dollars. The sheet applies the method you state for the buy option, shows the deduction timing year by year, and names the cheapest option on your own figures.
Related answers
- What is the residual on a farm machinery lease, and who pays it?
- Is leasing or buying a tractor cheaper in today dollars?
- Should I settle a machine purchase before or after 30 June?