Don’t fall for it!
Time and time again I see businesses advertising to, “Get in now and take advantage of the Government’s Instant Asset Write off”. Spending money to save tax just doesn’t add up.
Then there’s the classic, “my mate said I should do this ‘cause it will save me tax”.
If you spend $100 on something you might save say $33 tax… but you have to pay $100 to get that tax saving!
Even worse is where it’s a larger item that needs to be depreciated. You might spend $50k on a new ute but only save $413 in tax!
Our advice is to:
Don’t take tax advice from your mates, that’s what we’re for!
Never make a purchasing decision purely for tax reasons. Make the decision to buy or not for business reasons, then consider tax