If you own a small business, then you must be doing a happy dance right about now, thinking of all the software and equipment you will be able to deduct immediately from your tax bill.

So do these instant asset write-offs include morale boosting and team building equipment I wonder? Well if you check out the numerous reports on the internet, it appears that anything that is an asset to your business can be included in these deductions ( (refer to the article in The Age on 2nd June 2015- click HERE).

What is a business asset?

Obvious examples of business assets that can be included in these tax write-offs include tools for tradies, computer equipment and software for a home office, cars and vehicles, office furniture and any other equipment that boosts productivity.

The key here is that the asset has to boost productivity, which tends to leave the door wide open to a whole host of items that can be of both private benefit and will help to build your team and increase outputs in your business.

This applies to both incorporated businesses and sole traders, so we can only imagine what equipment will be included as new assets next tax time.

This new legislation however, if it actually gets through the senate, will be a huge boon to small businesses who want to increase their profits and grow their customer base.

Keeping employees happy

These tax benefits apply to any actively trading small business with an annual turnover of less than $2 million and includes assets up to the individual value of $20,000.

So as we all know, keeping your employees happy is the number one goal for any small business, because if your employees are happy they work harder and increase your bottom line. So why not take advantage of these new tax laws and create an entertaining staff room, full of cool game-room products, where staff can network and build a more positive team spirit?

We know that all work and no play ends up burning people out. So if you can add an element of fun into the workplace, which helps to de-stress people, promotes collegiality and stimulates them to reengage their creative juices – well isn’t that the essence of the new tax reforms?

I am sure that Joe Hockey wants every Australian small business to do their best to increase their productivity, so if adding a ping pong table to your staff room helps to do that – who are we to argue?  Be sure to get your own independent tax advice.