Add Value to your Business with new Assets
If you’re looking to expand your business, or improve operations, chances are you will need to purchase new assets or equipment.
In our client’s case, having a reliable vehicle to transport equipment or staff to service his customers was essential.
Our client Alex owns a video production company and wanted to buy a new ute to move his video gear safely and reliably. The Volkswagen Amorok fitted the bill. But Alex didn’t want to invest his cash in buying the vehicle outright right. Instead, he worked with our Commercial Finance Broker John Rashleigh to find a better and affordable option to buy his work vehicle.
John had completed a full financial assessment before putting Alex’s case forward for vehicle finance also known as Chattel Mortgage. He knew the lenders and what rates and conditions were on offer. In 24 hours, Alex had approval for his new car with ANZ Asset Finance.
This was a great win for Alex and the commercial brokerage team. If you would like help financing new equipment or assets for your business including vehicles, give John a call on Ph: 0409 497202 or provide your details here
Instant Asset Write-Off
If you have already purchased equipment or are planning to in the next couple of months, remember to take advantage of the Government’s $150,000 Instant Asset write-off that was extended until 31 December, 2020.
Under the current law, eligibility for the instant asset write-off has been expanded to include businesses with an aggregated turnover of less than $500 million (up from $50 million) from 12 March until 30 June 2020.
If you’ve purchased or are planning to purchase assets for your business, you may be eligible to claim an immediate deduction for assets less than $150,000.
The following tips can help you get your instant asset write-off claim right:
- check if you’re an eligible business
- both new and second-hand assets can be claimed, provided each asset costs less than $150,000
- assets must be first used or installed ready for use between 12 March and 30 June 2020. To be extended until 31 December 2020 once legislation is passed.
- a car limit applies to passenger vehicles. The limit is $57,581 for the 2019–20 income tax year
- if your asset is for business and private use, you can only claim the business portion
- different eligibility criteria and thresholds apply to assets first used, or installed ready for use, prior to 12 March 2020.