TEMPORARY FULL EXPENSING INCENTIVE HELPS WORKSHOPS

This incentive from the Federal Government aims to support businesses

If you own a workshop and have been putting off upgrading your equipment due to the costs involved, Capricorn says you will want to look into the Federal Government’s Temporary Full Expensing incentive.
Businesses that qualify will be able to immediately claim a full write-off for eligible assets. This means that the business portion of the cost of purchasing or upgrading equipment can be claimed on the next tax return.
Capricorn, a member-based organisation that supports businesses in the automotive industry, encourages its members and others to take advantage of this opportunity if eligible.
The organisation suggests that purchasing and installing equipment just before the end of the financial year may reduce the time the workshop is out of pocket, which may provide an opportunity to invest in capital equipment with minimal impact to cash flow.
Capricorn wants to inform its members that qualifying workshops can claim any eligible asset that is first used, held, or installed ready for use for a taxable purpose between the 6th of October 2020 and the 30th of June 2022.
Eligible assets may include wheel balancers, spray booths, solar panels, scan tools, hoists, and other workshop equipment, although there may be specific cost limits for certain assets like passenger vehicles.
Eligible businesses will also be able to deduct the business portion of the cost of improvements made to an asset from the 6th of October 2020 to the 30th of June 2022.
The Temporary Full Expensing Incentive is more likely available to businesses with an aggregate turnover of less than $5 billion. However, a business with a larger turnover may still qualify if it meets the alternative income test. For more details, you will need to visit the Australian Taxation Office website.
Capricorn members can take advantage of Capricorn Finance in order to purchase new equipment required to improve and grow a workshop.
Capricorn has pre-approved some of its members for loans up to $30,000 to fast-track the application process. It says this will make it easier to get equipment installed before the 30 June 2022 deadline. Fees and charges, terms and conditions, and lending criteria apply.

Capricorn invites interested parties to contact Capricorn Finance at lending@capricorn.coop