End of financial year is approaching: A great time to review strategies for your business
We are now well into the last quarter of the 2018 financial year, an important time for business owners to review their current needs and plan for not only ‘tax time’, but also consider their needs over the next 6 to 12 months.
Capital Expenditure Now
Under the current simplified depreciation rules businesses purchasing new or second hand asset/s costing less than $20,000 each for use in their business, can claim an immediate tax deduction for the cost of each asset subject to the following conditions:
- Your business has an annual turnover of less than $10 million, and
- The asset was first used or installed ready for use in the financial year you are claiming it in.
While these incentives have been reviewed and modified over the years, the current concession is scheduled to revert back to $1,000 from the end of the 2018 financial year. Consequently, it is important to act now if you wish to lock in any benefit from capital expenditure this financial year. You may also want to consider if it is appropriate to ‘bring forward’ some purchases to maximise the use of this concession.
Planning for the Future
We also understand that not all capital expenditure needs are immediate. For example, businesses often plan 12 months out for upgrades, or a new contract may not commence until later in the year.
Working with a commercial finance broker can help you plan for the future, providing valuable support in structuring and establishing your finance facilities.
Areas that we can assist with include:
- Establishing pre-approvals or limits to assist with future equipment finance needs
- Incorporating seasonal programs to align repayments with your business cash flows
- Working capital facilities including: traditional overdraft facilities, Debtor Finance, and Trade Finance
- Establishing debt facilities for business purchase and expansion.
Investing time in making these plans now will allow your business to respond quickly when planned expenditure is required, and assist in taking advantage of a new opportunity when it arises.
It is important to make these decision in consultation with your professional advisers in both tax and finance. Our experienced commercial finance brokers have the experience and ability to support your business with access to a comprehensive panel of lenders using a wide range of financial products.
Contact us today to find out more.