It has never been more important for you to have your finance in place for your current and future CAPEX requirements. Demand for good quality, new or used equipment is extremely high and the supply is extremely low ensuring the competition amongst businesses to secure these goods is robust!
So What Is The Ato Offering You To Help Your Business?
The government has implemented a number of measures to help businesses recover from the impact of the coronavirus pandemic (COVID-19). Most of these measures relate to claiming tax concessions, deductions, and depreciation of assets at tax time.
Loss carry back
Loss carry back provides a refundable tax offset that eligible corporate entities (companies, corporate limited partnerships and public trading trusts) can claim in their 2020–21 and 2021–22 company tax returns.
Eligible corporate entities can choose to carry back losses made in the 2019–20, 2020–21 and 2021–22 income years to the 2018–19 and later income years in which there was an income tax liability.
Loss carry back is intended to interact with temporary full expensing. This encourages new investment which may result in tax losses. The choice to carry back tax losses may result in a tax refund and an increase in business cash flow.
Temporary full expensing
Eligible businesses with an aggregated turnover of less than $5 billion can deduct the business portion of the cost of eligible new depreciating assets that are first held and first used or installed ready for use for a taxable purpose, between 7.30pm (AEDT) on 6 October 2020 until 30 June 2022.
For small and medium sized businesses (aggregated turnover of less than $50 million), temporary full expensing also applies to the business portion of eligible second-hand depreciating assets.
Businesses can also apply temporary full expensing to the business portion of the cost of improvements made to eligible depreciating assets.
If you don’t claim a deduction for an asset under temporary full expensing, you may be able to claim a deduction under:
- instant asset write-off
- backing business investment – accelerated depreciation
- general depreciation rules
(For further information visit ato.gov.au)
Let us help you to obtain finance pre-approval ensuring you secure the equipment you need whilst taking advantage of the tax savings available this financial year.
To assist with your finance requirements/advice please contact our specialists Jake Girke, Dean Bailey, Dean Kumnick, Peter Logan, John or Liz to arrange the finance to secure the equipment you need!
“IT’S EASY TO MEET EXPENSES – EVERYWHERE WE GO, THERE THEY ARE”
This article has been prepared based on information from the ATO website. No audit or review of the information provided has been performed and accordingly we express no opinion on whether it represents a true and fair view. To the extent permitted we do not accept any liability for any loss or damage which any person may suffer from relying on this information and we recommend you discuss your tax requirements with your accountant or a tax specialist to suit your individual circumstances.