iCREDIT Gold Coast can help you make sense of the different tax benefits that are available to you, when you finance your capital equipment. The most important piece of advice we can offer you however, is to not just lease equipment for the sake of the tax benefits. In the long run the equipment will become something that will drain your money, rather than make you money. When purchasing any equipment, the equipment’s benefit to your company or business must be the main reason for its purchase.
What is Capital Equipment?
iCREDIT Finance can help you figure out exactly what capital equipment is. It’s usually anything that is a physical asset to your business. This can be the office building or warehouse that your business runs out of, and the machinery, tools or equipment you need to create your products. It can also include vehicles that allow your business to function like delivery vehicles or vehicles that allow you or your employees to travel for business purposes.
So What Are the Tax Benefits of Capital Equipment Finance
Now we’ve established what not to do, and what capital equipment is, let’s get to the good stuff and talk about the tax benefits of capital equipment finance. The Australian Government recognises that your business can’t function without capital equipment.
Not only can you claim money for the capital equipment that you finance, but you can also claim money on the repair and maintenance costs. When you finance equipment, it gives you the opportunity to purchase any capital equipment before the new financial year, rather than having to wait until you can afford to buy it outright. This in turn means financing your equipment can give you a bigger tax refund come July 1.
If you’d like more information on the tax benefits of capital equipment finance feel free to contact us!