The end of the financial year is just under a month away which makes June the time to prioritise any capital investments in your business.
The cost of new assets and equipment, as well as cash flow issues often prevent businesses from taking advantage of excellent buying opportunities and tax incentives. Spending money now can help generate returns later down the line, and tax incentives can reduce the cost of any capital investment in your business and alleviate cash flow issues.
A range of incentives
Business owners can take advantage of the Instant Asset Write-off which is an immediate deduction, or Depreciate an item over time.
In 2016 The Federal government announced changes to the Instant Asset Threshold. The Threshold rose from $1000 to $20,000, meaning small businesses with a group turnover of $10,000,000 or under can claim an immediate deduction for assets they start to use – or have installed ready for use – provided each depreciable asset cost less than $20,000. The deduction is claimed in the income year in which the asset is first used or installed ready for use.
This advice is general in nature and your accountant can familiarise you with your businesses allowable deductions and how purchasing prior to the end of financial year can make very good business sense.
Invest in assets
To capitalise on tax incentives, business owners should be identifying what assets they might need, and discussing their suitability with their accountant.
These assets may include:
Mega Office Supplies has a range of business tools and assets that will help improve business efficiency, including printers, office furniture and stationery. Shop now to take advantage of tax benefits before 30 June!