In last Tuesdays budget the government announced two measures to to boost confidence and investment by small business.
The first being a reduction of the company tax rate by 1.5% to 28.5%, a move supported buy the opposition who in their reply speech want to go even further, and introduce a 5% cut so it’s safe to say that will make it through the senate.
The other measure that has been introduced is that small business (those with a turnover of up to $2 million per annum) can claim an immediate tax deduction for each and every item they purchase, up to $20,000. or the 1st $20,000 of items over $20,000.
This will apply for assets acquired or installed ready for use until 30 June 2017. The $20,000 limit applies to each individual item. Small businesses can apply this $20,000 rule to as many individual items as they wish.
So whether its a new cappuccino machine for a cafe’ or a delivery van, let us help you finance that new equipment and safeguard your precious working capital.
As always, you should seek professional advice to determine whether you are able to claim a deduction for such purchases.
Our recent blog on Where to get finance for a small business went through some of your options to fund your purchases.
- Business loans
- Commercial loans
- Lines of credit
- Home equity loans
- Franchise funding
- Venture capital
If you want top explore your options give us a call, This money isn’t a hand out, and the purchases aren’t free – but if you have a need to upgrade or replace some equipment this is a great opportunity to assist with that.
Elkins Finance is a MFAA Approved Credit Adviser and available to assist you.
Call 1300 355 467 or use the contact us form to request we contact you.