Clear Idea #3

22 www.acasociety.com | info@acasociety.com Investing in new equipment – is now the right time? I n unorthodox times like these, you may ask yourself what your approach to investing in new equipment should be. If upgrading or purchasing new technology and equipment fits within your plans then you should still consider the investment and ensuring you have access to capital for the purchase is key. Thanks to recent changes to the Government stimulus package, you can also upgrade technology, support long-term growth in your practice and, potentially, reduce your taxable income. The Government announced its goal to deliver support for business investment as part of its economic plan. This included a fivefold increase to the instant asset write- off threshold from $30,000 to $150,000 for eligible assets. All eligible assets includes new or second-hand assets first used or installed ready for use from 12 March 2020 until 31 December 2020 (extended from 30 June 2020). Further, for eligible assets that exceed $150,000 acquired from now to 30 June 2021, you can now take advantage of accelerated depreciation with 50 per cent upfront and the balance over the typical depreciating useful life of the asset. Generally, tax deductions only apply at your marginal tax rate so in uncertain environments it’s critical to discuss your cash flow with your specialist advisor if you’re looking to take advantage of this. The equipment a practice needs to perform efficiently may vary based on your speciality and technological advancements or size and scope of the practice. A common misconception is that you can only get the instant write off if you pay for the goods. This is not true you can borrow the funds and still receive the benefit. Facilities such as chattel mortgage, lease and rental provide a range of financing options that can be tailored to best suit the needs of the business, providing you with the flexibility to upgrade an asset when yours needs a change. Please speak with your financial advisors/ accountants about specific advice for your own situation, and the team at Credabl are always here to support your plans with bespoke funding solutions. Contact the Credabl team today to find out about your finance options. 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 taken into account 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. People with a passion. That’s the Credabl way. credabl.com.au 1300 CREDABL (1300 27 33 22) Stafford Hamilton Our team C’s things differently. We’re focused on creating a meaningful partnership with you to achieve your ambitions. Whatever you need, we have your back and we’ll get it done. PracticePurchase • CommercialProperty • GoodwillLoans • OverdraftFacilities • HomeLoans • CarLoans • Equipment&FitoutFinance • SMSFLending The issuer and credit provider of these products and services is Credabl Pty Ltd (ACN 615 968 100) Australian Credit Licence No. (ACL) 499547. Our specialist lending team has deep experience in the dental sector so we understand what you need. We’re here to support you at every step of your professional and personal journey. From building your practice to growing your investments, discover the difference that Credabl can deliver for you.