Pedal to the metal: EOFY is officially bearing down on us

Keen to buy a vehicle, asset or another vital piece of equipment for your business and immediately write off the cost? Well, you better get cracking, as we’re officially entering end-of-financial-year territory. How time flies. It feels like only yesterday that we were gearing up for the year, and now, it’s all systems go to beat the EOFY deadline. Why the hurry? Well, businesses keen to invest in their future can immediately write off the full value of any eligible depreciable asset purchased, at any cost, under the federal government’s temporary full expensing scheme. But there’s a small catch: the asset must be installed and ready to use by June 30 in order to be eligible for this financial year.

The write-off scheme explained in more detail

Ok, so temporary full expensing is basically an expanded version of the popular instant asset write-off scheme. It allows businesses, both big and small, to immediately write off any eligible depreciable asset until 30 June 2023 (which was recently extended from 30 June 2022 in the federal budget). This can help improve your cash flow by allowing you to reinvest the funds back into your business sooner. Businesses can also immediately deduct the business portion of the cost of improvements to eligible depreciating assets.

Asset eligibility

To be eligible for temporary full expensing, the depreciating asset must be: – new or second-hand (if it’s a second-hand asset, your aggregated turnover must be below $50 million); – first held by you at or after 7.30pm AEDT on 6 October 2020; – first used, or installed ready for use, by you for a taxable purpose (such as a business purpose) by 30 June 2023, and; – the asset must be used principally in Australia.

Obtaining finance that’s right for your business

When purchasing an asset with the intention of using this scheme, it’s crucial to select a finance option that’s suitable for your business. And that’s where we can help out. We can present you with financing options that are well suited to your business’s needs now, and into the future. So if you’d like help obtaining finance that’s gentle on your cash flow, and helps you achieve your long-term goals, please get in touch asap so we can help you beat the EOFY deadline. Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.
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