In October, the Australian government passed new tax incentives that aim to assist businesses that are investing in new machinery used for business purposes.
This is ideal for Australian companies with a less than $5b turnover, as they can now claim an instant asset write-off of up to $150,000 per asset – and this applies to as many individual assets as they choose.
This incentive is great news, as it includes machinery, delivery and installation. The incentive can apply to second-hand machinery units, available for all assets purchased between 6/10/20 and 30/6/22.
Whatever the business, this news can deliver real savings. For example, if a commercial laundry operating with a $2m turnover wants to purchase a washer for $140k and a dryer for $80k, the yearly profit will reduce by $220k.
This new Government incentive offer allows the reduction in business profit and tax saving due to the instant asset write-off the year of purchase. In our example above, the capital investment for new machinery saving equates to $57k.
If a business is looking at investing in new laundry machinery or upgrading the laundry to ensure Australian Laundry Standards are met, this is the perfect time to buy the right machinery. Richard Jay advises you to seek financial advice from your accountant or financial adviser to check your eligibility.
To find out more, give one of our experts a call.
