This article is sponsored content brought to you by Radincon.
Why you should consider investing in expensive equipment before 30 June 2023
Top quality equipment like the ultrasound and X-ray systems we provide at Radincon are great value, but they’re still major investments which you need to plan for. Tax incentives like the Instant Asset Write-Off can make that investment less of a strain on your pocket.
We sought advice from industry finance expert John Rowe of Veterinary Finance Australia (vetfinance.com.au), who has extensive long-term experience working with vet practices at every level of maturity. John has helped many of our customers finance purchases, so they keep more cash in the business and can grow faster. We love his strategic approach.
How does the Instant Asset Write-Off work?
Usually, when you buy capital assets, your accountant will depreciate them over the ATO-approved lifetime of the asset. In your accounts, you spread the cost over many years, and each year, you get a tax deduction based on a portion of the cost.
The Instant Asset Write-Off lets you depreciate the whole value of the asset in the first year. It was introduced in October 2020 to support businesses during COVID, and it’s currently due to expire at midnight on 30 June 2023.
What does this mean for you and your practice?
Quite simply, you pay less tax in the year that you buy the equipment. Every cent of the purchase prices comes straight off your tax bill and you get to keep that cash in your practice and use it for other purposes.
That could be paying off loans faster, or you might want to invest in business areas such as marketing, staff or training.
- If you’re looking to upgrade or add to your imaging capability, the Instant Asset Write-Off was made for you.
- The best and latest equipment will not only give you productivity gains, it’s a powerful way to retain and attract members of your team.
- But you need to move fast to get these benefits while the Instant Asset Write-Off is still available.
What are the Eligibility Criteria for the Instant Asset Write-Off?
You can apply the Instant Asset Write-Off on any capital equipment (assets) which you purchase and install before 30 June 2023.
- The goods can be new or second-hand.
- There is no upper limit on the value of the goods bought.
- You can buy from a supplier or make a private purchase.
- Payment can be either cash or via a finance agreement.
Could your practice benefit from new equipment? Now’s the time to find out. Here’s what you’ll need to do:
Talk to your accountant or tax advisor to get information and advice specific to your practice and your situation.