<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=442043613279730&amp;ev=PageView&amp;noscript=1">

Cubit Estimating Cloud: Anywhere, Anytime Estimating

Work anytime, anywhere with a fully managed cloud hosted solution that will transform your business. In the ever-evolving landscape of construction management, staying ahead means embracing innovation and technology. We’ve been committed to developing construc.....

David Cartwright

Business - 16 min read

New benefits now available to help your company at tax time

David Cartwright

Senior Marketing Manager - Software

May 14, 2021 2:36:59 PM

Write off any eligible business expense immediately with the new expanded Instant Asset Write Off. 

As Australian businesses continue their recovery journey in the wake of a turbulent 2020The Australian Government has made another move to help lessen the massive financial impact of the COVID-19 Pandemic. 

new financial initiative titled ‘Temporary Full Expensing,’ expands on the Instant Asset Write Off, which was originally introduced in 2011 for small businesses.  

Under this new iteration, businesses with a turnover of less than $5 billion (expanded from last year’s $500 million threshold) can immediately deduct the business portion of costs for all eligible assets.   


Understanding eligible assets 

Both new and second-hand depreciating assets can be deducted as part of this initiative, however there are a few important things to note.  

To deduct the expense of new assets, those assets must be first held, and first used or have been installed ready to be used after 7.30pm AEDT on 6 October 2020.  

To deduct the expense of second-hand assets, the assets must still meet the criteria above, however the turnover threshold for businesses is less than $50 million.  

If you have assets that require improvement, those costs are also deductible.  

You can learn more about temporary full expensing here.  


Claiming Operating Expenses 

At tax time, there are a range of deductibles you can claim, including capital expenses and depreciating assets, and you should get to know them to make the most of any savings available.  

One of these is operating expenses. Operating expenses are the ongoing costs of running your business from day to day; and are different to capital expenses, (which are assets purchased for your business). Generally, most operating expenses can be claimed in the same financial year as you incur them. Just remember to keep records of your expenses.  

You can learn more about claiming operating expenses here.  


New call-to-action



What does this mean for you and your business? 

Using this initiative, you’ll be able to purchase and claim deductions for assets that will help you not only perform your work better, but also grow your business.  

Estimating plays an essential part in any construction company. Determining accurate material quantities and the amount of labour allows you to anticipate your costs to ensure profitability and avoid the risk of potential losses. If you’ve ever wanted to improve the way you estimate, this utilising Temporary Full Expensing to purchase Cubit Estimating during our End of Financial Year Sale is the perfect opportunity.  

Some computer software, like Cubit Estimating, is considered an eligible deductible asset. Cubit Estimating, helps you improve the speed and accuracy of your work so you can start producing your most successful estimates, making it an ideal solution to improve the way you work and grow your business. 

Under this provision, you can claim your purchase of a Cubit Estimating licence as a capital expense, or a subscription to Cubit Estimating or Cubit Select as an operating expense. Whichever way you prefer to use the software, these tax benefits mean you can purchase Cubit Estimating and Cubit Select now and claim it as a write-off this financial year.   


General Advice Disclaimer 

The information provided in this blog article does not constitute financial or other professional advice and is general in nature. It does not take into account your specific circumstances. Before acting on any information you’ve read, you should consider the appropriateness of the information having regard to your objectives, financial situation and needs. We strongly recommend seeking independent financial advice for your accounting and taxation purposes. 

Cubit Estimating_logo_Blue

Tools for pros.
Prices for everyone.

We understand estimating can be complex and tiring. We're here to make it much easier.

Get your 14-day free trial of Cubit the natural estimating solution.

14-Day Free Trial

How to Articles

How the Tax Man can benefit your business

It’s that time of year again when it’s time to get all your financial ...

How to Win Construction Leads on Social Media

Attracting customers to your construction business is a continuous pro...

Product Updates

Cubit Select Update: Delivering New Improvements and Enhancements

March 2024 We’ve been working hard to implement some new improvements ...

Cubit Estimating Release: Delivering a range of improvements to enhance your work

Following the release of our highly anticipated collaboration features...