Time is running out to take advantage of tax incentives offered by the Australian Taxation Office (ATO). We’re also getting very close to the end of the 2020/21 financial year, so here is your reminder to make the most of what budget you may have left over.
If you are considering purchasing new assets and have not done so yet, temporary full expensing could be the option for you. Temporary full expensing allows for the total cost of an asset to be claimed as a tax deduction in the year of purchase. This means that by increasing tax deductions within a year, your business’s taxable income is reduced, giving your cash flow a boost.
There is no limit to the cost of the asset under temporary full expensing. If your business has an aggregated turnover of under $5 billion, you can take advantage of this incentive. It is important to note that assets must be purchased, installed, commissioned, and operating in your business between 6 October 2020 and 30 June 2022.
For more information, visit the ATO website. Alternatively, avoid the jargon and get in touch with our sales team. They can provide you with a bespoke solution for the best way to utilise your budget. Call 1300 1 ALTEC or contact an Altec representative online today!