If so do not miss out on your Instant asset write-off again!
This tax write-off has saved a lot of money and improved the cash flow for my clients. So the good news was the extension of the instant asset write-off. The better news was that it was increased to $150,000.
Tax details are here
Here is how it works
Say you were to buy a point of sale system for $5,000. Well, it does not cost you $5,000 as 10% of this is GST which you will be getting straight back so your proposed cost is $4,500.
The system without the Instant Tax write off would allow only 15% of this depreciation. This works out to a tax deduction of $675
- Let us say your company tax rate is about 26%, so you would get back $175.50 in income tax credits.
** This means to fund this in the first year it will cost $4324.50 **
Now with the Instant tax write off in place
- 100% of this would be depreciation
- If the company tax rate is again 26%, which means the business will get back $1170.00 in income tax credit.
** Which means that the business needs to fund this in the first year is $3330.00 ** a saving of you $994.50
This is a substantial saving!
Are you ready to take advantage of this threshold increase to get or upgrade a point of sale system from us? If so talk to us about how we can assist in keeping your business moving!
NOW is the time!
And please I am no accountant so check with your accountant about your situation first as it may be different.