It’s almost EOFY – two things you should know you can claim on at tax time

As the country slowly moves into a post-pandemic period, Australian small businesses continue to receive Federal Government support, including the extension to the Instant Asset Write-Off and the Technology Investment Boost.

Construction worker using a hammer

With the end of the financial year (EOFY) fast approaching, you may already be thinking about how to best support your business moving forward. With no assurances these pandemic related incentives will be offered again in the next Federal Budget, now is the perfect time to spend up and prepare your business for the new financial year.

The Instant Asset Write-Off

The Instant Asset Write-Off allows businesses with aggregated turnover of less than $500 million to buy assets and claim an immediate tax deduction of up to $150,000. The Business.gov website tell us assets must:

  • cost less than the instant asset write-off threshold
  • be purchased and used in the year the write-off is claimed.

You don’t have to do anything because the write-off is applied when you lodge your tax return for that year. How easy’s that? For more info on eligibility, check out the Australian Taxation Office (ATO) website.

 

How can I use the Instant Asset Write-Off?

Whatever you buy, either new or second-hand, must be used primarily for business purposes. Can include:

  • vehicles and trailers
  • tools
  • computers and software
  • office equipment.

 

Technology Investment Boost

Let’s not forget about the Technology Investment Boost, especially if you’ve been considering taking your business into the digital space. From the Budget 2022-23 website:

‘Small businesses with annual turnover less than $50 million will be able to deduct a bonus 20 percent of the cost of expenses and depreciating assets that support digital uptake. This includes portable payment devices, cyber security systems or subscriptions to cloud-based services. The boost will apply to eligible expenditure of up to $100,000 per year, incurred from Budget night until 30 June 2023.’

If your business turns over less than $50M annually, you can spend up to $100,000 to ‘support digital uptake’ and claim 120 percent of the costs. And that’s not a typo. You can claim 120 percent of your spend on your tax return.

 

How can I use the Technology Investment Boost?

If you’re keen to move into or upgrade your business digitally, there’s an endless list of assets you can buy and claim, including:

  • cloud based subscriptions
  • cyber security
  • a new or better website
  • portable payments devices
  • online sales platforms
  • data and analytics software.

As always, before making any significant purchases for your business, we always suggest you talk to your financial advisors.

 

Why now is the best time to take out a secured business loan

With instant asset write-offs and 120% tax deductions beckoning, the question really should be why wouldn’t you take out a secured business loan? Not to mention, with interest rates on the rise (and not expected to stop going up until the end of the year), locking in a loan before the next expected rate increase in early July is just a smart business choice. Strive Financial has a reputation for fast finance. And when we say fast, we mean super-fast. Like 24 hour loan approval fast. With mere days left before EOFY, whether you or your clients are looking for the best short, medium or long-term business loan, all that fast cash is just a click away.

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Posted 15 June 2022
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