I’m sure that most of us will agree that the recent budget announcement was fairly modest, which is to be expected in the wake of an election year. And while some will say that the budget lacked vision and support backing innovation for small business, others will be applauding the decision to extend the $20,000 immediate asset write-off for another 12 months to 30 June 2019.
What does this mean for small businesses?
A further 12-month extension was announced as part of the recent 2018 federal budget which comes as a win for all Australian small businesses, which have expressed a liking to the scheme since it was first introduced in the 2015 budget.
The instant asset write-off scheme allows businesses with annual turnover of under $10 million to immediately depreciate in full purchases of most assets under $20,000.
The federal government’s instant asset write-off scheme will now expire on June 30, 2019, instead of June 30 this year, despite calls to make the scheme a permanent feature of the tax system.
Making the decision to purchase assets for your business through an equipment finance contract not only preserves precious cashflow, but provides you with the assistance required to grow your business as well.
What about preserving cashflow?
Making the decision to purchase equipment and assets for your business is also an opportunity to consider financing these purchases through an appropriate equipment finance contract. This not only preserves precious cashflow within your business, but provides you with the assistance required to grow your business as well.
At Prosperity, we have relationships with all the major lenders in the marketplace to ensure we get you the equipment finance contract that works best for your business and personal circumstances. And thanks to the Federal Government, any equipment which you purchase prior to the end of June and which is set up and ready to go in your business gives you the tax advantage of 100% depreciation in this financial year.
If you have any questions or would like to discuss equipment finance options for your business, contact our lending specialist, Alex Warian.