EOFY alert! Financial year end just days away

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Small business owners wanting to buy a vehicle, asset or important piece of equipment and immediately write off the cost only have a few days to act this financial year.

Ah, deadlines: love ‘em or hate ‘em, they sure do get you moving.

And with June 30 just days away, time is running out for your business to take advantage of the federal government’s temporary full expensing scheme this financial year.

What is temporary full expensing?

Temporary full expensing is basically an expanded version of the popular instant asset write-off scheme.

It allows businesses that are keen to invest in their future to immediately write off the full value of any eligible depreciable asset purchased, at any cost.

This helps with your cash flow as it allows you to reinvest the funds back into your business sooner.

There is a small catch though: the asset must be installed and ready to use by June 30 in order to be eligible for this financial year.

But rest assured that even if you do order the asset, and then miss the June 30 deadline because it doesn’t arrive in time, you can still write it off next financial year because the scheme is set to run until 30 June 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.

Obtaining finance that’s right for your business

Being able to immediately write off assets is all well and good, but if you don’t have access to the funds to purchase them, the scheme won’t be of much use to you this financial year.

So if you’d like help obtaining finance to make the most of temporary full expensing ahead of the impending EOFY deadline, get in touch with us today!

We can present you with financing options that are well suited to your business’s needs now, and into the future.

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.

Aussie businesses load up on light commercial vehicles

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Australian businesses have shifted things up a gear this year, with new asset finance figures revealing a 187% rise in light commercial vehicle purchases since January.

The spike in business vehicle financing was driven by sales of all classes of vehicles, no doubt partly due to SMEs making the most of the federal government’s temporary full expensing scheme (aka instant asset write-off) ahead of June 30.

Here’s a quick snapshot of the Commonwealth Bank’s (CBA) business financing figures by vehicle type:

– Light commercial vehicles increased 187%.
– Utes and vans increased 85%.
– Heavy trucks increased 50%.
– New motor vehicles including passenger and SUVs increased 36%.

“We’ve seen the federal government’s instant asset write-off scheme support many of our customers in the past year,” explains CBA Executive General Manager, Business Lending, Clare Morgan.

“There’s a general expectation that we’ll see an uplift in both financing and registrations of business vehicles as we approach the end of financial year.”

Hold up, what’s this temporary full expensing scheme?

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 (recently extended from 30 June 2022 in the federal budget).

This can help improve your cash flow as it allows you to reinvest the funds back into your business sooner.

But here’s the catch: the asset must be installed and ready to use by June 30 in order to be eligible for this financial year.

Pedal to the metal before EOFY

If you’d like help obtaining finance that’s gentle on your business’s cash flow, and helps you achieve your long-term goals, please get in touch today so we can help you beat the EOFY deadline.

We work with a broad range of lenders and would love to present you with financing options that are well suited to your business’s needs now, and into the future.

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.

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

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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.

SMEs to get full asset write-off extension and fairer go with ATO

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Small businesses in dispute with the ATO over their tax debt will get “a fairer go” under new rules proposed in the federal budget. Meanwhile, one-year extensions have been granted for the full asset write-off and loss carry-back schemes. Let’s break it all down.

There’s a lot to digest in this year’s pandemic-recovery federal budget.

So today we’ve chosen to focus on just a few key budget announcements we feel may help SMEs manage finance and debt in the years to come.

Temporary full asset write-off and loss carry-back extensions

Great news for small businesses keen to invest in their future: they can continue to write off the full value of assets purchased until 30 June 2023.

The popular scheme, called ‘temporary full expensing’, is 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, at any cost, until 30 June 2023.

This can help improve your cash flow by allowing you to reinvest the funds back into your business sooner.

To complement this, the federal government’s ‘loss carry back’ provision has also been extended to 30 June 2023.

“This is a tax initiative that effectively allows a small business to carry back tax losses from 2022/23 income year to offset previously taxed profits as far back as 2018/19, to support business recovery,” explains Small Business Ombudsman Bruce Billson.

Third umpire to pause ATO debt recovery actions during disputes

Small businesses will soon be able to apply to the Administrative Appeals Tribunal (AAT) to pause or modify ATO debt recovery actions where the debt is being disputed.

“Small businesses disputing an ATO debt in the AAT will get a fairer go by stopping the ATO from relentlessly pushing on with debt recovery actions against a small business, while the case is being heard,” Mr Billson explains.

Currently, small businesses are only able to pause or modify ATO debt recovery actions through the court system, which can be expensive and time-consuming.

“Under the proposed changes, small businesses can save thousands of dollars in legal fees, not to mention up to two months waiting for a ruling,” adds Mr Billson.

The AAT will be able to pause or modify ATO debt recovery actions, such as garnishee notices, interest charges and other penalties until the dispute is resolved.

“It means that rather than spending time and money fighting in court, small business owners can get on with what they do best – running and growing their business,” says Mr Billson.

Get in touch for finance for your business

While it’s all well and good to have the AAT pause ATO debt recovery instead of the courts, the fact remains that many small businesses will still need to pay their ATO debt back.

So if the ATO is seeking a tax debt from your business, get in touch to discuss finance options for repaying them sooner, and giving you some breathing space.

And if we backtrack to the beginning of this article, being able to immediately write off assets is all well and good, but if you don’t have access to the funds to purchase them, the ‘temporary full expensing scheme’ won’t be of much use to you.

So if you’d like help obtaining finance to make the most of temporary full expensing for your business – whether it’s this financial year or next – reach out to us today.

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.

Business demand for equipment has hit record numbers

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Businesses across the country are purchasing new equipment and vehicles in record numbers, as companies big and small embrace the strongest market conditions seen in years, according to NAB data.

And with the end of the financial year approaching quickly, we’re expecting demand for equipment and vehicles to remain strong, with businesses looking to invest in their future by taking advantage of the federal government’s temporary full expensing rules (more on that below).

NAB believes the demand for new equipment is the result of a bumpy 2020, when businesses were forced to ‘pivot’ and innovate their way through the pandemic.

And now Australian businesses are investing to build on the opportunities they uncovered.

“With business confidence at an all-time high and businesses building on things they’ve learnt through the pandemic, I’m not surprised that equipment sales are so high,” says NAB Executive Regional and Agribusiness Julie Rynski.

The top equipment purchases Australian businesses have made according to NAB include:

– tractors up 146% year-on-year (YOY)
– irrigation equipment up 217% (YOY)
– earthmoving/construction equipment up 133% (YOY)
– forklifts up 216% (YOY)
– coffee machines up 155% (YOY)

What’s that ‘temporary full expensing’ thing you mentioned?

Temporary full expensing is more or less an expanded version of the federal government’s popular instant asset write-off scheme.

It allows businesses, both big and small, to immediately write off any eligible depreciable asset, at any cost, up until 30 June 2022.

This can help improve your business’s cash flow by allowing you to reinvest the funds back into your business sooner.

But it’s important to note that the asset must be installed, or ready for use, by 30 June in order to be eligible for this financial year.

Full details on business and asset eligibility can be found on the ATO’s website.

Want to explore your finance options for a new business asset?

Being able to immediately write off assets is all well and good, but if you don’t have access to the funds to purchase them, the scheme won’t be of much use to you.

So if you’d like help obtaining finance to make the most of temporary full expensing for your business, get in touch with us today.

We can present you with financing options for the scheme that are well suited to your business’s needs now, and into the future.

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.