While 2020 is going to be one of the most remembered years of our lives thanks to COVID-19, extraordinary tax changes and incentives have already marked 2020 as our most unique tax year ever.
With the federal government recently announcing changes to the instant asset write-off scheme, now is the perfect time to take advantage of a generous tax break and position yourself ready for the economic bounce back.
If you’ve had the purchase of new warehouse cleaning assets high on your wish list, do it now and benefit from a reduced 2020 tax liability* while you still can.
Changes to the instant asset write-off scheme
The ATO has temporarily increased the instant asset write-off threshold from $30,000 to $150,000 (excluding GST).
For the first time, it has extended the scheme to larger-sized businesses with an annual turnover up to $500 million.
You can now write off the cost of each asset that you buy for less than $150,000. You can buy multiple assets under the scheme. It applies equally to new and second-hand assets. That $150,000 figure excludes trade-in amounts.
But you need to buy before June 30, 2020.
From 1 July 2020 the instant asset write-off scheme will change with:
- The threshold reduced to $1,000
- Only small businesses with a turnover of under $10 million eligible for the scheme.
Businesses with a turnover between $10 million and up to $500 million will no longer be eligible to use the scheme.
Low interest loans funding asset investment
Another remarkable economic feature of 2020 is the record low interest rate.
With banks competing for customers, it’s a great time to negotiate an affordable business loan to buy a significant asset you can write off immediately.
While the loan paperwork you’ll need to wrangle won’t be insignificant, the return on investment (ROI) of the instant asset write-off makes it more than worth the time it takes to apply.
Increase your warehouse’s operational efficiency
Improving efficiency and productivity is a goal of any business. Investing in quality warehouse cleaning equipment will increase your operational efficiency by:
- Reducing downtime and the time spent cleaning, which frees staff for other critical tasks
- Avoiding interruptions, so staff won’t have to stop what they’re doing to deal with a mess they need to clean u
- Improving inventory management by giving staff easy and hazard-free access to aisles.
Clean warehouse floors will also reduce the risk of accidents and injuries, and reduce your maintenance costs.
And right now, it will also increase your bottom line with the added bonus of paying less tax for the current financial year if you take advantage of the instant asset write-off scheme.
Case study: How Mainfreight cleaned up on its efficiency targets
Global supply chain and logistics company, Mainfreight, found its large Sydney site in need of a new floor cleaning solution. Their machine’s performance was inadequate for such a large area and its waste hopper required frequent emptying. Operators found the cleaning process slow and frustrating.
Conquest provided a free assessment, which included measuring the space, examining the surfaces, and discussing the cleaning challenges with workers and warehouse managers. Conquest then recommended the Conquest PB180 LPG power sweeper.
With its huge 500-litre waste hopper, a 1900mm-wide sweep path, and environmentally friendly LPG engine, this robust and reliable power sweeper exponentially improved efficiencies at the Sydney facility.
Calculate your efficiency ROI
Visit our Calculating the ROI of your commercial cleaning equipment page to work out your ROI could be.
Act now to secure the significant tax advantage of the instant asset write-off scheme
While the COVID-19 crisis has challenged us all in many ways, you can take advantage of generous tax breaks while stimulating the economy.
At Conquest, we’re here to help you find the best way to maximise your tax savings before the instant asset write-off scheme ends on June 30.
Complete the form below and one of our team will be in touch.
4 great reasons to choose Conquest
When you buy from conquest, you get:
- 100% satisfaction guaranteed
- 60-day money back guarantee
- 4 years parts and labour warranty
- Fully flexible rentals without penalties
Are you ready to maximise your EOFY benefits?
For more advice and to help prepare a business case for the purchase of a significant warehouse cleaning asset, download our insightful brochure 6 ways for Warehouse Operations Managers and CFOs to maximise EOFY.
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* This advice is of a general nature. Please speak to your tax professional for guidance tailored to your situation.