Home Business News Federal Government Temporary Full Expensing Incentive

Federal Government Temporary Full Expensing Incentive

by Digital Mayne Media

What is it and how can your workshop benefit?

Capricorn Members, if you’re busy and thinking of upgrading your equipment, be sure to check out the Federal Government’s Temporary Full Expensing incentive. Packaging the Temporary Full Expensing with Capricorn Finance may enable eligible Capricorn Members to get the equipment they need without burdening their cash flow. Wondering what the Temporary Full Expensing incentive is? Read on to find out.

THE TEMPORARY FULL EXPENSING INCENTIVE
The Temporary Full Expensing incentive aims to support business and encourage investment by allowing businesses that qualify to immediately claim a full write-off for eligible assets. This deduction could help workshops grow by allowing them to claim, on their next tax return, the business portion of the cost of purchasing or upgrading equipment.

Tight cash flow often prevents workshops from investing in equipment and assets which could significantly improve their business efficiency. Purchasing and installing equipment just before the end of the financial year may reduce the time Members are out of pocket, providing an opportunity to invest in capital equipment with minimal impact to cash flow.

WHAT CAN WORKSHOPS CLAIM?
Workshops that qualify for Temporary Full Expensing can claim any eligible asset that is first used, held or installed ready for use for a taxable purpose between October 6, 2020 and June 30, 2022. This may allow workshops to get new spray booths, wheel balancers, hoists, scan tools, solar panels and other workshop equipment they need to have their business running at its full potential.*

The incentive also allows eligible businesses to deduct the business portion of the cost of improvements made to an asset from October 6, 2020 to June 30, 2022. This may provide workshops with the opportunity for upgrades which will enable them to achieve their maximum potential.

WHICH WORKSHOPS ARE ELIGIBLE?
Temporary Full Expensing may be available to businesses with an aggregate turnover of less than $5 billion. However, businesses with a larger turnover may be eligible if they meet the alternative income test. Head to the Temporary Full Expensing page on the Australian Taxation Office website to find more details.

CAPRICORN TOP TIP
As the deduction is only applicable to items used, held or installed ready for use before June 30 2022, Capricorn Members who qualify for Temporary Full Expensing and wish to claim a tax deduction should order any equipment early. This will help to avoid potential delivery delays or wait times that may impact their ability to claim the expense on their FY21/22 tax return.

WHAT CAN CAPRICORN MEMBERS DO 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 required to grow their businesses**. They’ve pre-approved some Members for loans of up to $30,000 to fast-track the application process, making it quicker and easier for Capricorn Members to get equipment installed before June 30, 2022.

Contact Capricorn Finance at [email protected] to discover how Capricorn Members can finance the equipment they need to build a stronger business.