As EOFY is almost here I’m sharing some ‘Did You Knows?’ relating to business assets
The Instant asset write off Scheme
Do you need to update technology, machinery, equipment or furniture, buy tools or a work vehicle?
A carefully considered purchase may benefit your business right away, and you could be eligible for the ATO $30,000 instant asset write off, reducing your taxable income by the amount of
Through this, a small business owner is effectively claiming 100% of the depreciation of the asset in the year it is first used or installed ready for use, as opposed to claiming a proportionate amount of depreciation each year over the depreciating asset’s effective life.
The downside to this being that the business owner is forfeiting any future entitlement to claim depreciation for that asset.
Further points to note -
-the threshold has been increased to $30,000 for all eligible assets first used, or installed ready for use from 3rd of April 2019 to 30 June 2020.
-there is no limit to number of assets purchased under this scheme
-entire cost of asset must be less than $30,000 (irrespective of any trade in amount)
-This includes Yellow Goods (construction) Green Goods (Agricultural) IT & Office, Hospitality equipment
Once you’ve consulted your accountant about the assets you have in mind its time to consider whether you should finance the asset/s.
It can be tempting to use business savings for these purchases, though if this depletes your access to cash flow it could be mistake which is more expensive in the longer run.
To discuss your recommended finance options & pitfalls to watch out for contact me directly.
I will offer you insights gained from my over 12 years in banking and finance.
It’s important to get the finance right the first time.
Due to the costs associated with refinancing car/equipment loans, even a dramatic interest rate reduction makes a refinance of these financially unfeasible.
Careful not to be ‘sold’ into an overpriced loan or one that doesn’t suit your early repayment intentions.
Already paid for it? Buyback Finance is Available
-Where a business pays for the asset outright, we can establish finance over the asset to reimburse the business & restore cash reserves.
This application should be made ASAP after the purchase, and at latest within 2 months.
Unsecured Business Loans without Financials for Businesses with average monthly turnover >$6,000
Fast decisions & funding, minimal documents required.
Allow businesses to access bulk supplier discounts/ add staff sooner/ access import and export opportunities or fit out their business premises.
Tax Debt Solutions
Where the repayment of tax debt is straining business cash flow we can restore access to cash flow to support the business or clear the tax debt with a finance solution.
These are available to both property backed and non property backed business customers.
Questions always welcome.
B Comm (Econ/Fin)
Complete Finance & Property
Level 3, Royal Brisbane Place
17 Bowen Bridge Road, Herston Qld 4006
PO Box 315, Wilston Qld 4051
Mob – 0403 045 011
Tel – 07 3257 3050