EOFY alert! Financial year end just days away

Small business owners who wish to purchase a vehicle, asset, or key piece of equipment and instantly deduct the cost have only a few days left this fiscal year to do so.

Love them or hate them, deadlines force you to get things done.

And, with June 30 fast approaching, the federal government’s interim full expensing program for this fiscal year is quickly running out of time.

What is temporary full expensing?

Temporary full expensing is essentially a more extensive version of the popular rapid asset write-off plan.

It enables firms who want to invest in their future to write off the full value of any qualifying depreciable asset purchased, regardless of the cost.

This improves your cash flow by allowing you to reinvest capital into your company sooner.

However, there is one caveat: the item must be installed and operational by June 30 to be qualified for current fiscal year.

But don’t worry: even if you order the asset and then miss the June 30 deadline because it doesn’t arrive on time, you’ll be able to write it off the following financial year because the plan will operate until June 30, 2023.

Asset eligibility

To be eligible for temporary full expensing, the depreciating asset you purchase for your business 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

– used principally in Australia.

Getting the correct financing for your company

It’s all well and good to be able to write off assets right away, but if you don’t have the means to buy them, the program won’t help you much this fiscal year.

So, if you’d like assistance acquiring financing to take advantage of temporary full expensing ahead of the looming EOFY deadline, contact us right away!

We can supply you with financing alternatives that are tailored to your company’s current and future needs.

To learn more, contact Premium Finance Group Australia at (07) 4720 8888 or email us at finance@pfga.com.au

Disclaimer: The content of this article is general 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 situation and may not be relevant to circumstances. Before taking any action, consider your 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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