Current tax rules allow for eligible businesses to claim an instant tax deduction for eligible depreciating assets. If you run a Small to Medium Sized Business (SME) and purchase a sit-stand desk or accessories for use in your business then this is likely to be eligible for an instant tax deduction (see below).
For example, for a company with a tax rate of 30% you get a tax deduction in the current income tax year of 30% of the purchase price of your desk and accessories. A purchase of $2,000 would attract an income tax deduction of $600. This makes the purchase of your desk and accessories more cost effective as well as getting you and your staff all the benefits of a sit-stand electric desk setup in terms of increased productivity and reduced rates of injury.
Your business may be eligible for a write-off either under the Instant Asset Write-Off provisions for eligible businesses or under the Temporary Full Expensing provisions.
The Instant Asset Write-Off applies to businesses with an aggregated turnover of less than $500 million. It applies to assets purchased by 31 December 2000 and first installed and ready for use between 12 March 2000 until 30 June 2021. The maximum deduction for an asset is $150,000.
The Temporary Full Expensing measures applies to businesses with an aggregated turnover of less than $5 billion. This higher turnover figure widens the range of eligible businesses. The deduction for the eligible assets is available when the asset is first held, and first used or installed ready for use for a taxable purpose between 7.30pm AEDT on 6 October 2020 and 30 June 2022. There is no maximum cap on the deduction.
The rules for an instant tax deduction make it even more attractive to buy a sit-stand desk and accessories. Check with your accountant to see how this may apply to you. You can also read about this on the ATO website.