There is not much time left if you want to take to take advantage of the instant asset write off which closes the 30th of June this year and if you miss out whether you can get it next year, no-one knows.
So if you are looking to get or upgrade a point of sale system from us, NOW is the time.
Here is an explanation of how it works, but let me first say that I am not an accountant, and I do suggest you contact your accountant to discuss it.
If say you were to buy a point of sale system for $7,500 inc GST. The first point is to the ATO it does not cost $7,500 as 10% of this is GST which you will be getting straight back so the proposed cost is $6,750.00.
The system possibly next year
- 15% of this would be allowed as depreciation, which works out to a tax deduction of $1012.50
- As the company tax rate is say 27.5%, the business would get back $278.44 in income tax credits.
** This means the business needs to fund this purchase in the first year $6,471.56 **
Taking advantage of the instant tax write off
- 100% of this would be allowed as depreciation, which works out here to $6,750
- The company tax rate says 27.5%, which means the business will get back $1,856.25 in income tax credit.
** Which means that the business needs to fund this purchase in the first year $4,893.75 **
This is a fairly substantial saving!
If you do not want to miss out, you need to contact us now, here.