Purchase your IT hardware now to claim before the End of Financial Year
As the End of Financial Year (EOFY) approaches, it’s the perfect time to take stock of your existing IT hardware and assess if you need to make any purchases for the upcoming year.
This is because the Australian Taxation Office (ATO) provides tax incentives for eligible business owners to claim an instant write-off for the business portion of the cost of an asset the year the asset is purchased and first used or installed ready for use.
What businesses are eligible for the instant asset write-off for End of Financial Year?
To be eligible for the temporary full expensing tax incentive and claim an instant write-off on IT hardware assets when you complete a tax return for your business from June 30, 2022, the business must be one of the following:
- A business with an aggregated turnover of less than $5 billion
- A corporate tax entity that meets an alternative income test as outlined by the ATO here
You can read more about temporary full expensing here.
What types of assets can eligible business claim tax deductions for End of Financial Year?
Eligible entities can claim deductions for the business portion of the cost of:
- Eligible new assets first held, first used or installed ready for use for a taxable purpose between 7.30pm AEDT on 6 October 2020 and 30 June 2023, for example a brand new computer, monitor, server or printer for your business
- Eligible second-hand assets where both the asset was first held, first used or installed ready for use for a taxable purpose between 7.30pm AEDT on 6 October 2020 and 30 June 2023 and the eligible entity’s aggregated turnover is less than $50 million. For example, a
second-hand desktop or laptop computer or printer for your business
- Improvements to existing assets incurred between 7.30pm AEDT on 6 October 2020 and 30 June 2023 to eligible assets. For example a brand new hard drive or additional Random Access Memory (RAM) installed in an existing computer
When purchasing new IT hardware assets, Adept IT Solutions always recommend you seek additional advice from the ATO and/or a reputable accountant to check both the business is eligible and the items being purchased to ensure you claim your tax deductions correctly and accurately.
Why it’s important to take stock of your IT hardware regularly
Here’s our top three reasons why it’s important to stay on top of what IT hardware and equipment you use in your business:
- You need to ensure there is enough equipment available to support both existing and potential new staff. This includes items that may be needed to support remote work from home or even on the road
- Technology can easily become outdated or unable to run the latest version of programs used in your business. It’s important to ensure that all hardware is up to date with the latest versions of programs so they can be technically supported sufficiently. Sometimes old computers or hardware need to be replaced in order for them to operate efficiently
- Upgrading or installing new hardware equipment can increase its speed and performance, therefore increasing productivity of your staff and making it more reliable and less likely to require maintenance and technical support
How can Adept IT Solutions assist with your End of Financial Year hardware purchases?
With the End of Financial Year only two weeks away and an industry shortage of IT equipment being experienced within Australia, now is the time to place your orders.
Adept IT Solutions online shop is now live, with 10’s of thousands of products ready for shipping.
If you would like direct access to the Shop, kindly email firstname.lastname@example.org and one of our friendly Sales team will be able to assist you further.