Thanks to the government’s new budget announcements on May 12 2015 small business owners with an annual turnover of under $2M are eligible for a $20,000 tax break on equipment purchases both in new or used condition. Just buy anything used to run your business under $20k for an instant tax deduction.
You can write-off as many individual items to the value of $20,000 as you like so it’s the perfect time to give your business the Kanga advantage. Got an ABN, start shopping!
Our sales consultants are experts when it comes to machinery equipment and can tailor a package suited to your needs. To arrange a no obligation demonstration fill out a form here.
What is it?
It’s obviously more complicated than the government just handing out $20,000 tax returns for free.
This form of accelerated depreciation allows you to reduce your taxable income by $20,000 – resulting in a cash flow benefit relative to the rate you’re taxed at.
Global accounting firm BDO uses the example of a small business, registered for GST, purchasing a vehicle with a GST-inclusive value of $21,999 ($19,999 ex GST). If the vehicle is delivered before 30 June 2015, and used 100% for your business, you will be entitled to an immediate deduction of $19,999 as well as being able to claim the $2,000 as a GST input credit.
This would effectively translate into a cash flow benefit of $6,000 at the current company tax rate of 30%, with a $5,700 saving over the 2015/16 and 2016/17 financial years thanks to the government reducing the company tax rate to 28.5%.
In real terms, this means that small businesses will have a less complex tax return to complete, as their assets will either qualify for the immediate write-off or, if the asset is valued over $20,000, with depreciation based on useful life. Assets over $20,000 can be fully written off, but not immediately. You can group your assets that exceed the threshold in order to depreciate them at the same rate (15% in the first year, 30% for every year after that).
In order to make the most of the deductions, businesses would have to claim before June 30 of this year in order to maximise cash flow benefits with any assets claimed.
I AM STARTING OUT
So you’ve got $20,000 and you want to get the most bang for your buck. Kanga have tailored 2 tax break packages to get you fully equipped to tackle more work!
2 Series “Business on a Trailer” – The Ultimate Starter Package.
The Kanga Kid is the world’s smallest multi-task compact skid steer loader, with a special range of attachments that completes the toughest jobs quickly and easily. With residential site access becoming increasingly smaller, the 2 Series is the popular choice among landscapers, pool installation, builders, contractors, electrical and many more.
6 Series Machine + 4 in 1 Bucket – The Perfect All-Rounder
The 6 Series Loader comes with huge 23″ tyres to give better ground clearance, faster ground speed and high puncture resistance. We keep you working longer! Perfect for all terrains due to the independent 4-wheel hi –torque drive system, and coupled with the 23inch tyres allows this loader in the most undulating places with an amazing 185mm of ground clearance. Proving popular for a variety of uses such as a rental yard or general contractor, the Kanga 6 series has a hydraulic system pressure of up to 3250 psi that ensures incredible power and durability.
* Offer valid on loaders delivered before 30th June 2015. The products that will be supplied as part of the promotion are as follows: Base 6 Series Petrol Loader (Model: PW628BAAAAAAAAAA) & 4 in 1 Bucket (Model: 0K60010) * Offer cannot be used with any other offer, promotion or existing quote. *Price ex GST
I ALREADY OWN A KANGA
Now is the perfect opportunity to increase the utilization of your Kanga Loader by investing in a range of attachments to expand your service offering.Our sales consultants can tailor an attachment package specifically for your industry so that you have the right equipment to enhance your bottom line.
Attachment Package – Purchase a whole range of attachments allowing you to expand your capabilities
Trailer & Attachment – Kanga’s trailer solution offers the ultimate in portability, convenience, and profit potential for any contracting business.
* Before acting on any of the key outcomes from the 2015 Federal Budget, we recommend seeking out professional advice from a qualified chartered accountant to ensure you are making the correct decision based on personal circumstances.
* For more information on the changes and what they mean for you, visit theAustralian Government’s website here.
* Images are for illustrative purposed only
* Not to be used in conjunction with any other offer, promotion or existing quote
* Promotion price is ex GST
