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We’ve been hearing a lot about stimulus packages aimed at helping businesses and the community during these uncertain times. But which ones are applicable to your business and what can you actually do to give your business that much-needed boost? Save money by buying your hardware now.
We all know that tech hardware has a lifespan. We see many people avoiding upgrades with the fear of large financial output. Although it can be a costly exercise, working with inadequate tools can cause inefficiencies, security risk and business disruption.
The recently passed legislation increasing the low-value asset threshold for depreciation means this could help save your business money. It presents an opportunity for you to do that much-needed upgrade of your hardware. The legislation states that there will be temporary increases of the low-value asset threshold for depreciation from $500 to $5,000. There is potential for immediate tax deduction for assets up to $5000*. This will allow you to deduct the full cost of your business assets with a value of less than $5,000 in the year you purchased them rather than having to spread the cost over the life of the asset. You can find out more about the changes here or talk to your accountant for advice.
The Government has implemented this to give business owners the opportunity to keep investing in your businesses throughout the challenging times that COVID-19 has brought about. The raised threshold will only be for a short time until 16 March 2021. This means now is the time to think about reviewing your hardware requirements.
Does this apply to lease to own? Yes! We understand that conserving and protecting cash flow might be priority right now, but you can still benefit from the new legislation by exploring the options of lease to own hardware. We have some amazing partners we work with in this area to make sure we can cater to your specific situation.
If you would like to talk to us about how you can save money and your options of buying or leasing your hardware, please get in touch. Are you feeling unsure about what needs upgrading? We’d be more than happy to complete an audit to get you started with a plan and quote. Send us an email or give us a call today. You can find our contact details here.