These deductions are available if the asset is purchased and/or financed before June 30th A simplified explanation The recent $30,000 immediate write off as mentioned in the Federal Budget on April 1st has now been passed through both Houses of Parliament so it is law (pending Royal assent which is simply a formality) So who can claim these 100% Write-Offs this year (2019 Financial year) and at what level? Let’s work backwards. $30,000 – 100% Write-Off (2/4/2019 to 30/6/2020) All companies with the turnover up to $50 million p/a can … [Read more…]
3 weeks to go for the $30,000 instant tax write-off opportunities this year
June 4, 2019 by Leave a Comment
Prepay and pooling offset
April 18, 2019 by Leave a Comment
Having recently written an article about the very significant increases in depreciation (up to 30% under the simplified tax system) now available to larger companies with an annual turnover of up to $10mil (click here for more information on Accelerated Depreciation), there are 2 additional aspects which provide further benefits. At the risk of sounding like Tim from a Demtel commercial “but wait there’s more”, there actually is!! Depreciation offset rules Under the pooling provisions within the simplified depreciation system ALL assets sit in this pool. If an asset which … [Read more…]
Accelerated Depreciation, the gift for companies with a turnover of up to $10million
April 18, 2019 by Leave a Comment
Although much publicity after recent budgets surrounded the ability for larger businesses to claim 100% depreciation (immediate write-off) on assets purchased of less than $30,000, the reclassification of a small business to incorporate companies with a turnover of up to $10million, this 100% write off is “small change” compared to what has now available to those sub $10mil turn over companies under the Simplified Depreciation Rules. See link: Simpler depreciation for small business Under the Simplified Depreciation Rules, company owners can actively elect to place all of their assets in … [Read more…]
Has the royal commission into banking had an effect on Equipment finance?
April 17, 2019 by Leave a Comment
The short answer is not really for those “in the know” or “well prepared”. To give more detail on this answer the following is relevant. Equipment Finance up to $500,000:- Most equipment finance up to $500,000 is now automatically approved on a fast track system without the need for financial information and purely based on 3 simple criteria:- New and used equipment up to $150,000 being vehicles and acceptable equipment is approved where the business has been operating for 2 years, has a clean credit history and the principal … [Read more…]
Taking the BS out of equipment finance
October 9, 2018 by Leave a Comment
Having spent 30 years financing equipment for a diverse range of long term and new clients in many capital intensive industries, I thought it would assist to take the BS out of some of the stories I have heard over the years. Interest rates If you are a solid company with good trading results, the interest rates available at present range from 4.5% to 5.25% depending on the asset and term. If you are paying more than this then it may be a case of what your provider would LIKE … [Read more…]
Home Loans: are you getting your bank’s best?
October 2, 2018 by Leave a Comment
As your home loan is one of the largest debts you will ever have and will have for years to come, 5 minutes invested to reduce these costs can potentially save a small fortune. The 3 easy steps are simple and well worth the few minutes required to ensure you secure the best rates in market. Step 1 Go online and look what your current bank is offering for new home loans to see if those rates are lower than what you are paying. Step 2 If your home loan … [Read more…]
Keys to the Kingdom
June 13, 2018 by Leave a Comment
Iseekplant doing a cameo on Finlease and putting some humour into the very dry subject of Equipment Finance 🙂 To find out more about our equipment finance or to use our online equipment finance calculator click here
Including a Finance Option in your quotes to increase sales and margins
January 23, 2018 by Leave a Comment
Let me start off by saying that most clients will ultimately finance the equipment they buy. Understanding this presents an excellent opportunity for suppliers to offer finance as a function of their sales process. In doing this, suppliers can reap significant rewards both in increased sales as well as margins on those sales. To explain this in more detail the following is relevant Increased sales. This formula is relevant whether the asset is $5,000, $50,000 for $500,000. For the sake of the exercise we will focus on a $50,000 asset. … [Read more…]
It’s the leftover not the turnover that is most important
January 8, 2018 by Leave a Comment
If a new customer paid you $8000 in return for one hour of your time, would you be willing to do that work? There would be very few people who would say no. Similarly, if you could save $8000 in expenses for the same one hour of your time, would you be just as keen to do that? $8,000 is the saving on a $300,000 truck if you manage to obtain finance at an interest rate which was 1% less than you were initially offered. Unlike home loans, Truck and Equipment Finance … [Read more…]
Finance – It’s more about the relationship
December 5, 2017 by Leave a Comment
As any business owner in a capital intensive industry would know, finance plays a significant role in their business. It is also true that finance needs to be competitive as it is a significant cost and a 1% saving in the interest cost on the finance of a $500,000 asset will save around $10,000 on a five year term & these savings can be obtained where business owners engage with the right finance provider. Once this is achieved, then it is all about relationship. Business owners have their lives made … [Read more…]
