With the end of another financial year fast approaching, now is the time to start planning your tax strategy. By minimising your income and maximising expenses to reduce assessable income and the amount of tax you pay, this could be the ideal time to purchase eligible assets.
So what types of things should you look at?
For a business that is operationally efficient, maintaining your income producing assets up to date is an important aspect to consider. Also the way these assets are funded, financing structures and repayments to suit your tax and cash flow needs should be reviewed from time to time
What are the potential benefits?
By securing vehicle and equipment finance prior to June 30, most depreciable assets can be funded, often with no upfront deposit. Also, subject to your circumstances, you may be entitled to claim an input tax credit for GST included in the purchase price of the asset and generally, the interest you pay plus the depreciation of the asset may be tax deductible to the extent the asset is used for business purposes.
There is also the $20,000 immediate asset write-off for small business entities (with an aggregate turnover of less than $10 million dollars) that has been extended to 30th June 2018. Both new and second hand assets are eligible (apart from a small number of exclusions), with no limit on the number of eligible assets costing less than $20,000 that you can immediately deduct.
How we can help...
At Street Wise Finance we work closely with your Accountant to set up the right structure to suit your individual circumstances arranging finance for new or used, car, boat, caravan, truck or any variation of automotive, commercial and leisure finance. And with a panel of over 25 different banks and finance companies our focus is on delivering the best approvals to suit each of our client’s objectives.
So don’t delay in getting in contact with Jason Hilder at Street Wise Finance on 0419 564 720 and finish of the 2018 Financial Year with a great strategy in place to take your business to the next level.
Disclaimer: The above information expressed is our opinion and should be considered as general information only. Street Wise Finance is not a financial advisor. Please consider seeking independent legal, financial, taxation or other advice on how your unique circumstances relate to the information provided. Street Wise Finance accepts no responsibility or liability for any loss caused due to either negligence or otherwise arising from the reliance on or use of this information, directly or indirectly, by use of this website.