Act Now - Instant Asset Write-Off Initiative Ending Soon24-Apr-2023
The end of the Federal Government’s Instant Asset Write-Off initiative is fast approaching and supplier association Visual Connections says businesses still have time to take advantage of the scheme...but they'll have to act quickly to keep more money in their pocket at tax time.
“This scheme has been a fantastic sales tool for suppliers and manufacturers, but more importantly it has benefited hundreds of industry businesses, supporting them to invest in the technologies and innovations which are so vital to help keep pace with changing consumer demands and expand into new markets,” says Visual Connections’ President, John Wall.
“Incentives like this don’t come along very often and, like all good things, we always knew it wouldn’t last forever,” says Wall, who is also Managing Director of Roland DG.
“There is still time for businesses to take advantage before the end of this financial year…however you’ll have to move quickly as any new purchases need to be not only contracted but delivered and installed before the 30 June cut-off point.”
Marian Taggert-Holland from EcoLease confirms this, saying equipment must be invoiced, first held, first used or installed before the June 30 deadline.
“Your business must turn over less than $5 billion to be eligible for the tax benefit, and you can use finance to purchase the equipment, as long as you use a Chattel Mortgage facility.”
Taggert-Holland says she has seen many businesses benefit from the ‘genuine value’ offered by the scheme, with companies effectively saving something like 25% on the purchase of eligible equipment.
“We’ve had clients who have saved over a million dollars on their tax using the Instant Asset Write-Off – or, as it’s now known, Temporary Full Expensing,” she explains.
“The benefit comes after you claim your tax deduction, meaning you keep more money in your pocket rather than handing it over to the taxation department, but the benefits of investment in new technologies and equipment go far deeper than that. New equipment means better productivity and new streams of income – the Instant Asset Write-Off is simply the icing on the cake,” she points out.
If you are looking to benefit from the initiative in its final days, you can find more detailed information here but both Wall and Taggert-Holland say it’s wise to speak to your accountant or financial advisor for advice that suits your particular business and tax situation.
For those looking at options, Wall points out that the upcoming Visual Impact Sydney show in May could be the best – and last – opportunity for businesses to see and assess the innovations which could benefit their business, and speak to suppliers about availability.
“As well as contacting your suppliers to see how you can secure the equipment and systems you need, business owners would be wise to arrange pre-approved finance so they can act quickly to take advantage of the incentive.”