With end of financial year approaching fast, don't forget to take advantage of the government instant asset write-off.
To make the deal even sweeter, Again Faster is giving an additional 5% off for orders between now and June 30.
Now is the best time to upgrade your gear and take advantage of the assistance on offer from the federal government.
It's Tax Time. So you're probably wondering what are my options to reinvest in my business?
You’ve probably got your tax cheque back and you’re unsure about the best way to spend it.
Businesses with an annual turnover under $5 billion can claim immediate tax deductions for all new eligible depreciating assets. This means save tax now, rather than having to claim those purchases as deductions spread over several years.
In the fitness industry, there is no limit on the number of items you can purchase and claim an upfront deduction for. This is a huge increase from the previous rulings and so if you currently run or you’re thinking of starting a gym, now is the time to act. This small business package is extraordinarily generous.
For most incorporated small business’s, a $33,000 equipment spend will reduce their tax bill by a massive $7,800.
With so many CrossFit boxes around, you need to stay on top of your game. By reinvesting in your business you can improve the satisfaction of your current customer base at the same time attract new customers. You can use your tax returns to immediately work on the growth and improvement of your gym facilities. Remove old, outdated and dangerous equipment and replace with the best and latest in the industry. This is a way to stay constantly active in order to generate more business.
On the flipside, added finance may be required and possibly difficult to secure. The tax is not a guaranteed return. You must be profitable and have paid taxes accordingly to get a return. Tax breaks and advantages are aimed at small business. They do nothing for start-ups who don’t pay tax for many years. If you do decide to reinvest, your cash flow may be strained so it is important not to overcommit.
How can businesses maximise the benefit of investing their return into their business?
Use your tax break to set up your business for success. Reinvest in your business. By doing so, you gain the assets you require and minimise your tax expense. Solely focusing on profit maximization, and not having the right assets or investment back into the business, can be the biggest cost of all. Profit obsession can deliver poor satisfaction, loyalty, efficiency and decreased business growth.
By investing in your business, you are creating value for you and your customers. As a business owner, you are spurring growth in your company by investing in new equipment. In turn, customers will be able to enjoy the upgraded facilities. Higher customer satisfaction increases loyalty. New equipment and facilities are also great marketing tools to attract new customers. The effects of reinvesting could spell success for your business.
Business owners should note that this measure doesn’t change the eligibility for tax deductions of these assets. It simply changes how quickly a small business is able to receive the tax deduction.
This page provides the below commentary with the caveat that each taxpayer has the responsibility for establishing their own tax position. It would still be sensible for each entity to obtain independent advice about their tax obligations before taking a position.