The federal government's 2015 budget included some great news for business, including the immediate tax deduction for assets costing less than $20,000 purchased by eligible small businesses. However you need to be careful if you are financing any of these purchases.
It's ok to use finance to purchase an asset under this incentive, as long as you use the right type of finance. Leasing and Hire Purchase will disqualify you from the deduction as under these structures your business does not actually own the goods - the finance company does. So, make sure you use a Chattel Mortgage finance structure so the goods are actually owned by your business. A Chattel Mortgage is similar to your home loan mortgage, in that you retain ownership of the asset.
Astute Ability Group can help you arrange a Chattel Mortgage for business assets such as cars, trucks, trailers, IT equipment, bobcats, farm machinery etc. Just remember to talk to your accountant first to make sure you are making the most of the tax break and that it works for your individual circumstances.
There is more information available in this article: SMH Article re: $20,000 tax break
Or you can call Astute on 1300 306 694 for more information about how we can help you.
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