THE FINAL COUNTDOWN: Why Upgrading NOW Makes Financial Sense
As the financial year draws to a close, it becomes crucial to seize this opportunity and evaluate your business, maximise returns, and address key challenges. With the current industry landscape marked by rising material costs, supply chain disruptions, and workforce considerations, taking advantage of the Instant Asset Write-off (under Temporary Full Expensing) can yield significant benefits. However, it's important to note that this time-sensitive opportunity is coming to an end on June 30, 2023. Therefore, it is essential to take timely action that can have a positive impact on your business's financial well-being. Your future self will thank you later!
Instant Asset write-off ending June 30, 2023 (under Temporary Full Expensing)
We all know that the end of the financial year is not only about reaching the finish line but also the financial bottom line. For eligible businesses, the Instant Asset Write-off (under Temporary Full Expensing) has been a major financial draw-card in previous years, but will be expiring on June 30, 2023. The ability to write-off the full expense of an asset this financial year rather than depreciating it over a number of years, can significantly reduce your business income and lower the tax for your business to pay. This decreases the “true investment cost” of qualifying assets, such as tools or equipment, and it might pay off to bring forward an investment you would have otherwise looked at a year down the track. Simply because buying it this financial year might save you a lot of dollars.
But how much could your business really save?
This will have to be answered on a case-by-case scenario as there is a range of factors determining this. We have created a sample case study to demonstrate what it looks like for Construction Business XYZ purely for the purpose of demonstrating the scale of this tax benefit.
The Construction Business XYZ Solutions has an aggregated turnover of $8,000,000 for the '22-23 income year. They do not use the simplified depreciation rules. The business purchases a new Cutting Station and some tools at a hypothetical cost of $5,000 before 30th June 2023 and immediately uses them wholly for business purposes. Using the Instant Asset Write-off (Temporary Full Expensing), the business can deduct the cost in the ‘22-23 income year. Their income will reduce by $5,000 and the tax saved would be $1,250^ (at 25% company tax rate).
Turn TAX TIME into TOOL TIME with Drillfast EOFY Sale
At Drillfast, we believe that you deserve not only the best tools but also the best deals possible. That's why we're excited to announce our EOFY Sale! This is your chance to evaluate your tool and equipment needs, consider any necessary upgrades, and make the most of the Instant Asset Write-off and the EOFY sales before it's too late.
FREE* Cold Cut Saw and FREE* Weber Baby Q with Cutting Station
The Cutting Station is a neat, mobile workstation that eliminates the need for a separate cutting room and is essential for safely cutting lengths, such as conduit, timber, cable tray and pipe.
Receive a FREE* Cold Cut Saw and FREE* Weber Baby Q when you buy one Cutting Station before June 30, 2023.
FREE* Yeti Tumbler and FREE* ITM Iron Vice with Mobile Tuff Bench
Mobile Tuff Bench
A combination of heavy-duty storage cabinet and multi-purpose work surface, this innovative workbench makes any job that bit easier, while ensuring that your tools and equipment remain safe from thieves and damage. Its ultra-tough surface is ideal for fixing chain vice, engineers vice and other equipment, making it indispensable when pipe threading and bending.
Buy a Mobile Tuff Bench before June 30, 2023 and receive a FREE* Yeti Tumbler and FREE* ITM Iron Vice.
There are only two right times to upgrade your tools: when you need them and when the end of the financial year approaches. With June 30 just around the corner, now is the perfect time to contact our team and discuss a customised solution for your challenge.
*Offers valid until 30th June 2023. Pricing quoted excluding GST and freight charges.
Free Cold Cut Saw and free Weber Baby Q with any purchase of Cutting Station (30ASS7).
Free ITM Iron Vice and YETI Tumbler with any purchase of Mobile Tuff Bench (30ABH1270M). Colours may vary.
While stocks last. One per customer account.
^All information provided in this example is of a general nature and for illustration purposes only. It is not personal financial or investment advice. It does not take into account your particular objectives and circumstances. No person or business should act on the basis of this information without first obtaining and following the advice of a suitably qualified professional advisor. Underlying assumptions of this calculation: Construction Business XYZ has an aggregated turnover of $8,000,000 for the 2022-23 income year. The business purchases new tools & equipment such as a Cutting Station for the hypothetical cost of $5,000, before 30 June 2023 and immediately uses it wholly for business purposes. In this instance, Business XYZ can deduct the cost of investment in the 2022-23 income year, using the Instant Asset Write-off / Temporary Full Expensing Method (eligible businesses only and the business does not use the simplified depreciation rules). The income will be reduced by $5,000 and the tax saved would be $1,250 at a company tax rate of 25%. For details, speak to your account and visit www.ato.gov.au.