08 Jun Year End Tax Tips
I hope that you find the following information, which we provide as a free service to our clients, useful.
As tax time 2017 Financial year draws near, the team at Holistic Business Developers has decided to provide some free money and taxation advice over the coming weeks which will help you to make the most of this years deductions and tax incentives potentially leading to a substantially lower tax bill leaving more of your hard earned money for the more important things.
This weeks hot tip:
Plant & Equipment / Vehicle / Office Upgrades and Purchases
There is no time like the present when it comes to purchasing or upgrading vehicles, business equipment or computer hardware or software. The Federal Government’s small business tax break for purchases under $20,000 will be ending on the 30th of June 2018. Quite simply, any purchases of the items listed above from July 1st will not have anywhere near current taxation benefits but it is certainly NOT too late to take advantage of this.
To take maximum advantage of this tax break your purchase must meet the following criteria:
- Predominately for business use.
- Under $20,000.00 Inclusive of GST.
- Financed equipment is OK but must not be under a lease arrangement.
Example for illustrative purposes only***
Car purchased for $20,000.00 on or before June 30th. savings at company tax rate of 30%:
Reduction in tax payable @ 30% company rate – $5,435.40
GST Credit Rebate – $1,818.18
Finance related deductions $Variable
Total cost of purchase after deductions $12,746.42
If you ask me that is a very good reason to make sure that any significant purchases or upgrades are done on or before June 30!
Holistic Business Developers are now offering equipment and vehicle finance please contact me to arrange a pre-approval or with any questions you may have.