There is not a small business in Australia who hasn’t in some way or another been affected by Covid-19. Revenue have been hit, cashflow has been hit and ultimately confidence has been hit.
There have been dramatic and quick changes to customer bases, rules and regulations, and the way businesses can run and operate, with the transition and conditions easier for some businesses and industries to meet than others.
But despite the financial turmoil and how counter-intuitive this next idea may seem in this context, right now may just be the time to spend .
Under the Federal Government’s Coronavirus Stimulus Package for small business, the instant asset write-off threshold has been astonishingly quintupled from $30,000 to $150,000 for businesses with a turnover of less than $500 million (also increased from $50 million).
And the good news is the Government has just announced that the scheme which was due to end on June 30 has now been extended until December 31 2020.
That is a huge amount of money that is now available to small businesses, that could be invested into your business right now, and followed up with an immediate deduction come tax time.
And while the last few months have been tough by any standard, and the next few months remain uncertain, it is time to start looking ahead and recalibrating.
This next month is the perfect opportunity to sit down with your adviser and think about the long-term strategic plans and opportunities for your business and whether this tax concession could help.
That piece of machinery you were thinking about upgrading, or the company car you were putting off buying, or the new computers and laptops you need – now might be the right time to consider bringing forward those purchases.
UBT advisers are here to help you and your business navigate these challenging economic times and sit down with you to understand on a case by case basis whether utilising this tax concession is the right thing for you and your business.
Both the Federal Government and State Governments right around the country have offered generous stimulus packages in response to Covid-19 to help small and medium sized businesses keep up the cash flow, protect employment and manage a downturn.
Ensure you are getting the best advice and are accessing all the help you are entitled to.