Your accountant may be advising you to purchase new assets for your small business, and there is more for you to gain than just tax minimisation.
The tax year is coming to a close, and as a small business, your accountant may be pressing you to acquire new assets. Investing in new equipment, such as vehicles, can minimise company's tax liability and maximise their tax strategy as the end of financial year approaches.
Depending on your situation, your accountant may be advising you to:
- Acquire an asset through a secured loan agreement (AKA a chattel mortgage)
- Lease an asset through a rental agreement (AKA an operating lease)
- Purchase an asset outright with cash
In seasonally adjusted terms, businesses are looking to spend more, according to recent Australian Bureau of Statistics figures. In the December quarter, for instance, companies across the country were preparing to spend almost $32 billion of capital - a 0.8 per cent rise on the previous three-month period.
The budget for new equipment and machinery was a healthy $11.5 billion, which was again a slight rise of 0.1 per cent. As we approach the end of the financial year, these numbers could jump quite substantially.
The new Federal Budget will also support new asset acquisitions, with immediate depreciation on assets up to the price of $20,000 still in play until June 2017. On top of that, the criteria for a small business to participate has been expanded from $2 million in annual turnover to $10 million from 1st July.
A word of advice: don't forget to quiz your accountant on whether the small business accelerated depreciation measures apply to you and how best to take advantage. On a secured loan agreement, the asset belongs to you from the outset and can be depreciated as per your accountant's advice. This means you may be able to reap the benefits of the Federal Budget measures while also enjoying the benefits of regular, predictable monthly repayments.
Sweetening the deal
Whilst financing a new asset, such as a vehicle, will keep your accountant happy and content, Classic Funding Group would be delighted to assist with smart finance solutions that will thrill and delight you as well.
Businesses looking at finance options through Classic can benefits from:
- Fast approval, same-day settlement
- No financials for vehicles up to 150K*
- No deposit required
- No real estate security required
- New or used cars, for flexibility to search the market for a great deal!
To sweeten the deal, if you finance a vehicle with us before 30 June 2016, you will receive a $200 Signarama voucher to put towards branding your vehicle, helping you to get more from your assets for less.
Create additional brand exposure to kick-start the new financial year and save your cash; there's something you and your accountant can both smile about!
Get a vehicle finance quote from Contact Classic Funding Group today. Prefer to have a chat? Give us a call on 1300 780 895.
*All approvals are subject to credit criteria, and terms and conditions may apply. Financial Statements are not required as long as the vehicle is not older than 3 years, and is purchased from a registered dealer and you are a property owner. Financial Statements may be required for amounts greater than $150,000 or if the qualifying criteria are not met. Classic Funding Group does not provide financial advice and recommend that you obtain financial advice on the tax and accounting treatment of any finance solution you choose.
Too many SMEs are making this mistake
By Adam Joy
Taking digitisation out of the ‘too hard’ basket for SMEs
By Jason Brouwers
The insanity of consumer expectations
By Jason Dooris