Faced with the human cost of the COVID-19 pandemic and the subsequent risk to businesses of all kinds, the Australian Government has taken numerous steps to create a supportive environment for homegrown companies. One of the primary methods has come from the Australian Taxation Office. Asset purchases made in 2020 are easier to write off for deductions than during any other year, whether they’re being purchased by individuals or the company itself.
This means if you’re planning on refreshing the equipment used by your employees, now is an ideal time to act. A new printer, scanner or multi-function device could make a positive difference in your operations, and the temporary changes to the instant asset write-off scheme have put you in a position to buy. But what exactly does the law state, and which devices should you focus on for maximum results?
What has changed in the government’s 2020 instant asset write-off scheme?
The instant asset write-off scheme is not new, but it has changed in response to the COVID-19 pandemic. Under these rules, companies small enough to meet the eligibility threshold can write off their portion of an asset’s cost from their taxes, up to a set amount. The deduction takes effect immediately, in the year in which the asset is first used or installed.
This year, to help organisations survive the economic impact of COVID-19, the threshold of allowable asset purchases has increased to as much as $150,000 per asset, up from $30,000. Furthermore, companies with an aggregated turnover of $500,000 or less can use the scheme. Last year, that number was only $50 million. The period in which these purchases can be made extends from March 12 to December 31, 2020.
What are some ideal devices for your company?
With a new tax deduction in place for equipment purchases, it’s a great time to examine your options for new technology tools. Since a cutting-edge printer, scanner or multifunction device can be a money-saving asset for years to come, the financial benefits of upgrading can extend beyond 2020. The main rule of thumb to keep in mind when shopping for devices is that the right hardware for your business will help you pursue your overall organisational goals, becoming a core part of your operations.
For instance, if you are in the midst of digitisation and the adoption of a new document management strategy, scanners represent an excellent investment. These can be high-speed, high-capacity models for use on large-scale archiving projects, portable scanners to deploy to a newly remote workforce or multifunction desktop devices that combine data capture with printing.
To make a lasting positive impact on your company in more than one way, you can invest in a modern printer with eco-friendly features. Today’s assets can be surprisingly green, with advanced power-saving modes that drop your company’s electricity consumption and options such as default two-sided printing delivering lower paper usage.
Even if your primary workplace is not an office, there are plenty of other assets that work in other types of facilities. For instance, small-footprint label printers excel in warehouses, enabling your personnel to quickly get the shipping labels products need. Even if your personnel work mostly in the field or on the go, there are portable printing and scanning options that can ride along in a vehicle or be stashed in a briefcase.
Whether you’re ready to launch a full print transformation or are simply seeking to increase efficiency with a few key devices, there are opportunities throughout your organisation to add value. Taking the ATO up on its offer of a more lenient instant asset write-off is a great way to take extra value from these changes. Check-in with your accountant or financial advisor for advice on how best to proceed, then reach out to Brother if you need insight or inspiration on selecting the right devices for your business.
