Federal government temporarily full of expensive incentive
FEDERAL TEMPORARY FULL FUNDING: WHAT IS IT AND HOW DOES YOUR SHOP BENEFIT?
Capricorn Members thinking of upgrading equipment should definitely check out the federal government‘s temporary full-cost stimulus, Capricorn says. Packaging of the temporary full settlement with Capricorn Finances may be eligible Capricorn Members get the gear they need without draining their cash flow.
The temporary full-cost incentive
The Temporary Full Expensing incentive aims to support businesses and encourage investment by allowing qualifying businesses to request immediate full write-off on qualifying assets. That deduction could help garages grow by allowing them to claim the business portion of the cost of buying or upgrading equipment on their next tax return.
Tight cash flow often prevents garages from investing in equipment and assets that could significantly improve their business efficiency. Purchasing and installing equipment near the end of the fiscal year can reduce the time members are out of pockets and provide an opportunity to invest in capital equipment with minimal impact on cash flow.
What can workshops claim?
Garages that qualify for the temporary full reimbursement may claim any eligible assets first used, held or installed for a taxable purpose between October 6, 2020 and June 30, 2022. This can allow workshops to acquire new spray booths, wheel balancers, hoists, scan tools, solar panels and other workshop equipment they need to run their business to its full potential.
The incentive also allows eligible companies to deduct the business portion of the cost of improvements made to an asset from October 6, 2020 through June 30, 2022. This can give workshops the opportunity for upgrades that will allow them to reach their maximum potential.
Which workshops are suitable?
Temporary full spends may be available for companies with less than $5 billion in total revenue. See the Temporary Full Expensing page on the Australian Taxation Office website for more details.
Capricorn Top Tip:
Since the deduction only applies to items that were used, kept ready for use or installed before 06/30/2022, Capricorn Members who wish to qualify for the temporary full expense report and claim a tax deduction should order all devices early. This will help avoid potential shipping delays or waiting times that could impact their ability to claim the expense on their FY21/22 tax return.
What can Capricorn members next?
Capricorn knows that upgrading existing equipment or purchasing new equipment can significantly increase a workshop’s capacity and capabilities.
Capricorn Finance makes it easier for members to purchase the equipment needed to grow their business**. We have pre-approved some members for loans of up to $30,000 to expedite the application process and make it quicker and easier Capricorn Members who have devices installed before June 30, 2022. Contact Capricorn Finance at [email protected]Capricorn.coop to find out how Capricorn Members can fund the equipment they need to build a stronger business.