If you’re thinking about investing in capital equipment for your business, now is a great time to do it. The Australian government is currently offering a number of financial incentives such as the Instant Asset Write Off Scheme & Loss-Carry Back Measure to encourage businesses to invest in new plants and machinery.
The Instant Asset Write Off Scheme allows you to claim the full amount of an asset tax deduction upfront, in the first year the machinery is installed, saving you a significant amount of tax.
The Loss-Carry Back Measure allows you to offset any losses your business makes this financial year against profits made in previous years, up to a maximum of $1 million. This can result in a refund of tax paid in earlier years.
So why should you take advantage of these incentives? There are a few key reasons:
1. Capital equipment can help increase productivity and efficiency
Investing in new plant and machinery can help your business become more productive and efficient. By increasing your production capacity, you’ll be able to boost sales and grow your business.
2. It can help you save on taxes
Taking advantage of the current government incentives can save you a significant amount of money in taxes. This will leave you with more cash to reinvest back into your business.
3. It can improve your competitiveness
Investing in new technology can help you stay ahead of the competition and maintain a competitive edge. By keeping up with the latest trends and innovations, you’ll be able to better serve your customers and stay one step ahead of your rivals.
4. It can help you save on energy
Many businesses have used the incentive to invest in newer energy efficient technology to replace old machinery. Some businesses have been known to cut their energy bills in half doing so.
5. Attract and/or retain staff
As many businesses welcome back employees into their offices and onto their production floors, they are investing in new technology to attract and retain staff. Newer technology with improved features, can make the life of employees easier.
So if you’re thinking about investing in capital equipment, now is a great time to do it. Take advantage of the current government incentives and you could save yourself a lot of money.