- Asset Leasing
- Chattel Mortgage
- Commercial Hire Purchase
- Rent-to-Own
As the new financial year gets underway, it’s opportune for businesses to review their finance options in light of current taxation measures. While a cheap interest rate is integral to cost-effective business finance, tax deductions can represent a real saving. Deductions reduce taxable income which lowers the amount of tax payable in that financial period.
All forms of business finance have tax deductible elements. But the amount of the deduction and the timing in when that benefit may be realised, varies with different finance products. Deductions are subject to rulings as made by the ATO. In addition to the standard tax rulings, the Federal Government can introduce special measures, often with a timeframe, to support and assist business.
Such was the situation in April 2020 when the Federal Government introduced Instant Asset Write-off as a tax measure for eligible businesses and assets as part of the COVID-19 stimulus package. This measure was amended several times later in 2020 to temporary full expensing.
Taking advantage of the current taxation measures available to a business through financing can result in significant benefits in real terms. Optimising tax benefits available with business finance products can maximise deductions and allow the business to realise savings on tax payable for 2022/23.
For businesses considering investments in assets such as cars, trucks, other vehicles, plant, machinery and equipment, selection of the finance product should take into account consideration of the tax benefits available.
Asset Acquisition Finance –Tax Deductibility
The finance products available for the acquisition of business assets include:-
Tax Effective Business Finance Options 2022/23
As the new financial year gets underway, it’s opportune for businesses to review their finance options in light of current taxation measures. While a cheap interest rate is integral to cost-effective business finance, tax deductions can represent a real saving. Deductions reduce taxable income which lowers the amount of tax payable in that financial period.
All forms of business finance have tax deductible elements. But the amount of the deduction and the timing in when that benefit may be realised, varies with different finance products. Deductions are subject to rulings as made by the ATO. In addition to the standard tax rulings, the Federal Government can introduce special measures, often with a timeframe, to support and assist business.
Such was the situation in April 2020 when the Federal Government introduced Instant Asset Write-off as a tax measure for eligible businesses and assets as part of the COVID-19 stimulus package. This measure was amended several times later in 2020 to temporary full expensing.
Taking advantage of the current taxation measures available to a business through financing can result in significant benefits in real terms. Optimising tax benefits available with business finance products can maximise deductions and allow the business to realise savings on tax payable for 2022/23.
For businesses considering investments in assets such as cars, trucks, other vehicles, plant, machinery and equipment, selection of the finance product should take into account consideration of the tax benefits available.
Asset Acquisition Finance –Tax Deductibility
The finance products available for the acquisition of business assets include:-
- Asset Leasing
- Chattel Mortgage
- Commercial Hire Purchase
- Rent-to-Own
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