Why your business should consider upgrading soon….
With End of Financial Year fast approaching it’s a great time to review whether you’ve done everything possible to take advantage of the tax that your business pays. There might be opportunities that you haven’t considered and, as a fellow business owner, I recommend exploring this from every angle (you work too hard not to!)
Here are some ideas:
GST
If you’re registered for GST you can claim a GST credit on the purchase price of the vehicle or equipment to help offset any GST that you may owe
Remember, with purchases such as vehicles that may be for both business and private use you will need to work with your Accountant to ensure that the use is declared correctly
You will also need to familiarise yourself with the limits for vehicle purchases as there is a cap on how much GST you can claim in this category; more information can be found here:
Instant Asset Write Off
This is a great way to reduce taxable income and bring a new vehicle or piece of equipment into your business. Purchases of eligible items for business use can be instantly written off rather than depreciated over time, meaning that the cost can be captured in this financial year
To qualify the vehicle or equipment must be purchased and used before June 30
There are limits so please check with your Accountant or review the ATO website before you buy:
EOFY Sales and Discounts
Just like regular retailers, many suppliers of vehicles and equipment offer great deals heading into June in order to close their books on a good number - why not take advantage of this?
There are various financing options that I can assist with to make this happen. Not only could you have a (legal) way to reduce your tax bill, but you’ll also start the new financial year with a new piece of equipment and a clear plan to pay for it. Give me a call to discuss 0423 208 235