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EOFY is officially upon us, so put the pedal to the metal.

man and woman doing a high five

Do you want to buy a vehicle, an asset, or another important piece of equipment for your business and write it off right away? Now is the time to go to work, because we've officially entered the end-of-financial-year region.

How quickly time flies. We were just getting ready for the year a few weeks ago, and now it’s all systems go to meet the EOFY deadline.

What’s the rush?

Under the federal government’s temporary full expensing policy, firms eager to invest in their future can immediately write off the full value of any eligible depreciable asset purchased at any cost.

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

More information about the write-off scheme

So, temporary full expensing is essentially a more comprehensive version of the popular quick asset write-off concept.

It permits enterprises of all sizes, large and small, to write off any depreciable asset instantly until June 30, 2023. (which was recently extended from 30 June 2022 in the federal budget).

This can help you increase your cash flow by allowing you to reinvest funds into your company more quickly.

Businesses can also deduct the part of the cost of upgrades to qualified depreciating assets that is related to the business.v

Eligibility for Assets

The depreciating asset must meet the following criteria to be eligible for temporary full expensing:

– new or used (if it’s a used item, your total turnover must be less than $50 million);

– held for the first time on or after October 6, 2020, at or after 7.30 p.m. AEDT;

– by 30 June 2023, you have used, or have placed ready for use, for a taxable purpose (such as a business purpose), and;

– The asset must mostly be utilised in Australia.v

Getting the correct financial

It’s critical to choose a finance solution that’s right for your organization when purchasing an item with the purpose of utilising this program.

And this is where we can assist. We can supply you with financing alternatives that are tailored to your company’s current and future needs.

So, if you’d need assistance securing financing that’s easy on your cash flow while also assisting you in achieving your long-term objectives, please contact us as soon as possible so we can help you beat the EOFY deadline for your company.

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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