Changes in the 2015 Federal Budget now allow small businesses with an annual turnover of less than $2 million to immediately write-off (expense) any purchases of items $20,000 and under, that they can make between now and June 30 2015.
This has been increased from the previous instant asset write-off threshold of $1,000 and presents small businesses with a significant tax write-off opportunity.
As an example “Raymondo’s Bar & Bistro” is presently looking to report a net profit for the June 2015 financial year of $60,000 – which they will end up paying tax of $17,100 on (at the adjusted company tax rate of 28.5%). If they were to purchase or finance (through a Chattel Mortgage) 3 items valued at $20,000 each totalling $60,000 prior to June 30 – they will completely offset their profit and not pay any tax for that year.
This would provide Raymondo’s Bar & Bistro with $17,100 of savings back into the business through reduced tax – which could be used to effectively purchase equipment or more than cover the interest costs to finance the equipment purchased.
POSmate can help you get an immediate Tax Write-off:
You don’t need to have the cash to go out and buy equipment to get the write-off. POSmate can assist you obtain with Flexi-Commercial, a Chattel Mortgage Loan facility – which will allow you to qualify for the immediate tax write-off. With a Flexi-Commercial Chattel Mortgage, you “own” the equipment immediately, so it’s recorded in your business in the same way as a cash purchase.
Flexi-Commercial finance offerings include;
- Range of terms from 1 to 5 years
- Extremely competitive rates and terms & conditions
- Approvals normally within 24 hours
- Security lodged over the funded equipment only
- No deposit or bonds subject to meeting lending criteria