Changes to intangibles depreciation
Recently, the federal government introduced new legislation where a taxpayer such as yourself can adjust the depreciation for your intangible or software assets.
Currently, the intangibles must be written off of a certain number of years. With all intangibles or software developed or purchased from 1 July 2016, you have the ability to assess your own effective life.
Not only does this mean you can write off your assets as necessary, you will also have the ability to clear your balance sheets when items such as these become obsolete.
Our firm would be happy to discuss this matter with you further. If you have any questions, please do not hesitate to contact us.
Decision on your software development pool
Recently, the federal government has introduced legislation where a taxpayer such as yourself can self-assess the effective life of your in-house software.
This means you can set the write-off amount based on the circumstances of your business as opposed to previously writing off assets as a legislated rate.
There are certain additional criteria that are necessary for items that would normally go into the software development pool to be counted as an intangible asset. Firstly, the software would need to be ready for use before it can be depreciated.
If you would like to talk through options such as these more thoroughly, please do not hesitate to give us a call. We would be happy to discuss it further.