CATEGORY 126 AUSTRALASIAN DENTIST C M Y CM MY CY CMY K FINANCE Can dentists still grow their practices despite ongoing economic uncertainty and expectations for another tough year? Throughout previous challenging markets, the dental profession has proven itself resilient time and time again. This is especially evident in practices that have leveraged technology, improved their workflows, and invested in business purchases. And when it comes to the last point concerning goods and purchases, making such important decisions for your practice should be top of mind right now. This is because the tax rule around claiming immediate deductions won’t be in play for much longer. Temporary full expensing was extended to 30 June 2023 – and then it stops. While many have called for the measure to become permanent to help curb inflation, it did not receive any further mention in the October 2022-23 Budget. Subject to any further announcements, from 1 July 2023, all accelerated depreciation measures will have ended. Instant asset write-off will revert to a $1,000 asset cost cap and is limited to taxpayers with aggregated turnover less than $10 million. It’s the last chance for eligible practice owners to take advantage of the settings while it’s around. After all, making significant business purchases can be much more beneficial beyond its primary purpose i.e. cash flow, savings for other expenses or upgrades, increased patient satisfaction and also a boost to staff morale. Another major consideration ahead of the 30 June 2023 cut-off is the supply of stock. Ongoing delays from overseas manufacturers, plus a spike in sales and stock shortages, could mean that leaving purchases to the last minute may see deliveries and installation fall outside of EOFY. So avoid cutting it too close and missing out by getting in early and beating the crowds. And when it comes to financing the goods, it’s been widely assumed that you must pay cash in order to get the write-off. However, you can actually borrow funds to acquire the eligible assets. Facilities such as a chattel mortgage, or equipment loan, may meet the criteria. You can also buy from multiple sources or buy multiple eligible items under one invoice. It’s the final countdown Making the most of the temporary full expensing measure before it ends Here are a few general rules for the measure to confirm with your accountant: u For assets you start to hold, and first use (or have installed ready for use) for a taxable purpose from 6 October 2020 to 30 June 2023, the instant asset write-off threshold does not apply. You can immediately deduct the business portion of the asset under temporary full expensing u Goods can be new or second-hand u Goods are first held from 6 October 2020, and first used or installed by 30 June 2023 u You canmake numerous claims across many tax invoices or with multiple items on the one invoice u It’s not a one-time-only offer, just so long as each purchase meets the criteria u If financed, the goods must be under a specific loan type, as not all facilities are appropriate u Assets that fall into this scheme include medical equipment and devices, dental chairs, IT equipment including servers, computer and phone hardware, along with scanners, copiers etc. Plus practice furniture, cabinetry, white goods and so on u All work vehicles to the extent that they are used for business purposes u The team at Credabl is always here to support your plans with bespoke funding solutions. You can chat live on our website 24/7 www.credabl.com.au or call one of our specialist lenders on 1300 27 33 22. This article is a guide only and does not constitute any recommendation on behalf of Credabl Pty Ltd (ACN 615 968 100) or any of its related bodies corporate (Credabl). The information in this article is general in nature and we have not considered your personal objectives or financial circumstances or needs when preparing it. Before acting on this information you should consider if it is suitable for your personal circumstances. Credabl is not offering financial, tax or legal advice. You should obtain independent financial, tax and legal advice as appropriate. 1800 806 450 www.amalgadent.com.au SANDBLASTING EQUIPMENT SALE Visit our booth #265 SEE BACK COVER FOR OFFER! Footer Ads #97.indd 3 19/01/2023 6:37:41 PM
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