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New benefits now available to help your company at tax time

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 2020, The Australian Government has made another move to help lessen the mas.....

Business, Featured - 12 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.  

 

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.   

 

Buildsoft’s tax time benefits 

To help you take further advantage of the tax benefits available, we’re reducing the cost to purchase our estimating software for a limited time.  

From 31 May to 30 June, you’ll save $1000 +GST when you purchase the Professional or Professional + BIM editions of Cubit, or 15% when you upgrade an existing Cubit Estimating licence to a higher edition.  

Our price reductions are:  

  • Purchase Cubit Professional + BIM for the price of Cubit Professional  
    Now $3,995 +GST - save $1,000 +GST 
     
  • Purchase Cubit Professional for the price of Cubit Standard 
    Now $2,995 +GST - save $1,000 +GST 

  • Subscribe to Cubit Estimating or Cubit Select for 12 months and pay for only 10 when opting to pay for your subscription annually

  • Upgrade from Cubit Professional to Cubit Professional + BIM  
    Save 15% 
     
  • Upgrade from Cubit Standard to Cubit Professional 
    Save 15% 
     
  • Upgrade from Cubit Standard to Cubit Professional + BIM 
    Save 15% 

  • Upgrade from Global or Offsider Estimating to Cubit Estimating
    Save 15%

  
If you’re looking for your first estimating software package, want to move to a better system, need to purchase additional licences, or want to book in for training, now is the time to consider making Cubit your software of choice. 

These price reductions are only available until June 30. Be sure you check out all the details of what’s on offer, so you can put your business in the best position possible to be successful throughout the rest of 2021 and beyond. 

 

 

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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. 

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