The benefits to buying into the sales hype of “End-of-Financial Year” Sales depends on a number of factors, and your individual financial needs.
If you are seeking a tax benefit from your Purchases, the factors on which it depends may include the following:
1. Is the item considered to be a capital asset such as a car or machinery?
If so, then there is probably very little tax benefit in buying it before the end of the financial Year as opposed to afterwards. Dependant on the recent changes to the Taxation Laws, you generally can’t claim a tax deduction for the full cost of a car or plant and machinery.
2. Are you classed as a “small business” entity?
A “small business” taxpayer is one with turnover of less than $2 million and special rules apply regarding taxation, which can be more favourable. This threshold applies to all businesses you own, so if you have more than one then you will need to add their turnover together.
3. Are you getting a “real” discount by buying it before June 30?
If it will be cheaper for you to buy the item before June 30 rather than after it, then it is a real saving. If you have received advice about tax benefits in making a capital Purchase for your Business, make sure you have considered the likely cash flow impact down the track. And remember – use long-term funds to acquire long-term assets, not working capital.
Benson Leasing can help you work out an easy-payment schedule to suit your individual needs, considering your circumstances, the equipment you wish to purchase, and we can obtain the very best rate for you.
TESTIMONIAL
Hi Jody
A quick note to say “Thank You” for your efficiency in the process of finance application for Russell & Lorraine. It was fast and efficient. It helps when we have a buyer who is willing to cooperate as did Lorraine.
Thank you once again,
Kind regards
Venus
Hot Rock Dining International Pty Ltd
Please note that the above information is of a general nature, and is not given as specific Taxation Advice. We recommend independent Taxation Advise pertaining your individual needs is sought before making any financial or investment decisions.
Benson Leasing and its Representatives do not accept any liability for any errors or omissions of information supplied in this editorial.