Can I claim tax back on my poly water tank?

If you're aiming to reduce the utility costs in your business, the tax paid for your purchase of a polyethylene water tank can more often than not be claimed back.

That is because a water tank is classed as a depreciating asset by the Australian Tax Office, as it is designed to add value to your company as a whole. By capturing and utilising rainwater, a company has the ability to maintain business continuity through times of drought, while also reducing water wastage.

Small businesses have a particularly helpful hand in this regard, as the 2015 federal budget significantly raised the ceiling for equipment purchases that are eligible for immediate tax deductions.

From now until June 2017, organisations that have an annual turnover of less than $2 million can claim immediate deductions for equipment that costs up to $20,000 – the previous limit was $1,000. Such a large expansion of the initiative will cover the purchasing costs of many items, including a water tank – large or small.

The number of items purchased below this $20,000 mark is also unlimited, so businesses do not have to choose between claiming back on, say, their new company car or water tank.

Meanwhile, as TaxPayers Australia explains: "the government will significantly expand accelerated depreciation for small businesses by allowing them to immediately deduct assets that cost less than $20,000.

"Assets valued at $20,000 or more (which cannot be immediately deducted) can continue to be placed in the small business simplified depreciation pool and depreciated at 15 per cent in the first income year and 30 per cent each income year thereafter."

Once a company decides to invest in a new tank, the only remaining choice is what type will suit your business.

Fortunately, water tank manufacturers all over Australia are working on a range of designs; and thanks to the rotational moulding process, they are able to create bespoke products to suit virtually any property or application.

By David Francis