Right now the Australian government is practically throwing money at you in the form of tax benefits. What are they and how can you take advantage of them? Read on!
A few weeks ago I wrote a blog post titled Replace or Die, showing a number of recent hardware failures experienced by our clients, and when you should look at replacing your computers (hint: it’s 5 – 7 years). No matter how good your equipment is, these failures invariably happen to good businesses!
Since writing the original blog post, we’ve had 2 more client computers experience sudden hardware issues, so the trend continues. True, as an Apple tech support company we do see more than our fair share of hardware issues, but our IT support experience guarantees us that it will happen to you, sooner or later.
The great news is that it’s the perfect time to replace your Mac, Windows PC, and any computer related equipment you may have. Read on to find out why.
The tax reward, and how to get it
The Australian Federal Government is letting small businesses claim the depreciation of any asset purchased in this financial year (to the value of $20,000 per asset) in one hit. This is great because normally assets are depreciated over several years.
To qualify, all you have to do is:
- Have an annual turnover of less than $10 million (the majority of small businesses do)
- Buy your new gear by 30 June 2018
Example
Peter runs a marketing business which had a potential tax bill of $85,000 in FY 17/18. Peter decided to replaces his 5 desktop computers, 4 notebooks, 2 iPads, projector, colour laster printer, and server. Each item is under $20,000, and in total Peter spends $29,000 on the gear. This saves Peter $7,975 in taxes, reducing his tax bill from $23,375 to $15,400, while at the same time refreshing his entire office IT.
Peter doesn’t have to think about depreciating the gear over 3 years; it’s all done in one step.
Of course, this is just an example, so please always consult your accountant regarding any tax or other implications and benefits for your business.
Why now?
June is the obvious best time of the year to do this, as it’s the last month of the financial year, an purchases made now will minimise the time gap between buying your new assets and reaping the tax benefit.
Hurry!
There isn’t much time until the end of June 2018! If you have a shopping list ready, or even just want to investigate what you should buy, contact us at info@ihelpit.com.au, or call us on 1300 469 622 and we can help you get the ball rolling.