1. It’s TAX time…no need to stress
The end of the financial year is just around the corner.
The end of the financial year is just around the corner so now’s a good time to ensure you have everything in place to lodge and maximise your tax benefits for the year ending June 30th 2019.
So here are a few reminders and pointers:
- Business lodgement:
If you are a small business and preparing your own return you must lodge by 31 October. If you are using a registered tax agent they will have different lodgement dates. If you are using a tax agent for the first time or using a different tax agent you need to let them know before 31 October. However, income and deductions must of course be reconciled up to the cut off date of June 30th. - PAYG lodgement:
If you have employees, you should lodge the PAYG payment summary annual report to the ATO by 14 August each year. - Depreciation:
Make sure you review any amortisation schedules and if you need any copies of finance contracts from Ecolease, please get in touch. Importantly, don’t forget that if you want to take advantage of the extended and expanded Instant Asset Write-Off scheme this financial year, the assets must have been purchased and installed between April 2nd and June 30th 2019.
For further details on this refer to our recent Instant Asset Write-Off article.
2. The Election and Instant Asset Write-Off. Will the election result make any difference?
In a nutshell…NO!
If your business turnover is less than $50M p.a, it doesn’t matter who wins the election this month in terms of the recently expanded and extended Instant Asset Write-Off scheme.
This is because the bill has already passed through both houses of the reps and senate and the ATO have featured the new scheme in their information to tax agents.
So how does it work again?
If you acquire and install a new or used asset between April 2 2019 and June 30 2019 of $30,000 or less you can instantly write-off the TOTAL asset value this financial year.
For example, if your business is on track to deliver a $100,000 taxable (net) profit this financial year and you purchase two pieces of equipment, say one for $30,000 and the other for $25,000 (GST exclusive), you “write-off†a total of $55,000 reducing your taxable profit to $45,000. This means you pay tax on $45,000 rather than $100,000.
At the company tax rate of 27.5%, that means a tax saving of $15,125 on top of having two new pieces of income generating equipment!
Additional Instant Asset Write-Off features:
- for businesses with turnover of $10 million, you can instantly write-off the asset value of new and used equipment costing $25,000 or less, if it was acquired and installed for use between 29 January and 1 April 2019
- for businesses with turnover of $10 million, you can instantly write-off the asset value of new and used equipment costing $20,000 or less, if it was acquired and installed for use between 1 July 2016 and 29 January 2019
- any business related asset including equipment, cars and solar panels can be ‘written-off’
- the equipment can be used/second hand
To take advantage of the Instant Asset Write-Off this Financial year with your next piece of equipment get in touch with us now. Remember the asset (car, solar panels, equipment etcetera) must be acquired between April 2nd and June 30th 2019 to qualify this fiscal year.
3. New Kit, New Car, Earn Business Rewards Points
Earn up to 100,000 points with your next finance contract.
Ecolease work with many different lenders to bring our clients the very best value in financing including Business Reward Points. With one of our lenders you can earn 1 Qantas point per $1 dollar financed up to 100,000 points per finance contract.
You can even get a free Qantas Business Rewards Membership, saving $89.50, and can transfer Qantas points from the business account to any Frequent Flyer account for business or leisure. Not only that, but the total value of the points are allocated upfront, so you can jet off somewhere sooner.
So if you need new equipment and or a new vehicle and would like to take advantage of earning business reward points on the value of the financing then get in touch.
