The RBA recently released their Business Sector report showing business confidence running high nationally across most industries with conditions forecast to remain solid for at least the next three to five years. Apart from the positive economic environment we’re experiencing right now, small business should already be thinking about upgrading their equipment for many other reasons. What may be perceived as a costly unnecessary exercise could save you a lot of money and time in the long run. When a piece of equipment breaks down that is crucial to your business you jeopardise not only the loss of income until its fixed or replaced but future business may very well suffer.
The government has also put in place incentives for business to take advantage of the tax benefits of upgrading equipment via the instant asset write off. Businesses with turnover up to $5 billion will be able to deduct the full cost of eligible depreciable assets of any value in the year they are installed. The cost of improvements to existing eligible depreciable assets made during this period can also be fully deducted.
Other incentives for small business involve taking advantage of the improved technology/features of the latest equipment including:
- Improved energy or operator efficiency through utility savings, simplified operation and problem recognition.
- Less pollution via cleaner emissions (if applicable).
- Higher accuracy and less waste.
- Reduced labour costs from improved efficiency or automating more of the process.
- Higher safety standards.
- Existing equipment is obsolete, difficult to maintain, or hard to get parts for.
- Existing equipment no longer meets your functional or technical requirements.
Finance options are varied across hire purchase, leasing or purchasing outright. Associated costs involved are currently at historic lows making even the decision to purchase equipment outright more viable. Finding a solution that suits your cash flow is as easy as discussing options with your lender or finance broker.
Business Fuel backs Australian businesses, so if you need funding for your EOFY equipment upgrades you can apply for a business loan now.