The Instant Asset Write Off Scheme is a great opportunity for businesses to invest in new equipment and claim an immediate tax deduction. It has been extended for the 2022-2023 tax year and is dubbed ‘Temporary Full Expensing”.
It’s estimated that millions of Australian businesses are eligible for the scheme in a move set to encourage spending among businesses. This is a great way for businesses to save on taxes and invest in new equipment. If you’re eligible, be sure to explore how you might take advantage of the scheme before it ends.
The notion behind the scheme is to empower Aussie businesses to claim more tax deductions earlier on in the asset’s lifetime, in turn, helping them better manage their cash flow and get a return on their investment more quickly.
Temporary Full Expensing allows for an immediate deduction for purchases of new, eligible depreciating assets (for businesses with an aggregated turnover under $5 billion), eligible second-hand assets (for businesses with an aggregated turnover under $50 million) and the balance of a small business pool at the end of each income year in the period (for businesses with an aggregated turnover under $10 million).
To learn more, contact your accountant for eligibility, thresholds, inclusions and exclusions and how much you can write off this financial year.
If cash flow is an issue, then why not explore asset finance? This way, you can spread the cost of a purchase over time. Whether you’re looking to purchase new equipment, expand your operations, or make other major investments, securing the right financing can help you get ahead and achieve your goals more quickly.
Our experienced team will work closely with you to maximise your financial position and help secure the capital you need. Drop us a line to get started on your exciting next chapter, today.
Call 07 4639 1011 or email admin@pmgfinance.com.au
DISCLAIMER: The above content is to provide general information and does not constitute financial, legal or other advice. This means that duties and requirements imposed on people who give financial advice do not apply to this content. For advice contact your accountant or legal advisor.