Businesses will not have to wait until tax time to benefit from the Federal Government’s new business tax breaks under a deal announced this week by Brisbane equipment finance company GoGetta- a division of Silver Chef .
The temporary business investment tax break – part of the Federal Government’s $42 billion National Building and Jobs Plan – is designed to keep the economy moving by providing extra tax relief for companies buying capital assets.
GoGetta Managing Director Allan English welcomed the plan, saying it would provide significant benefits for business and industry. Upgrading equipment can boost productivity, ultimately leading to long- term profit increases.
Under the government’s $2.7 billion plan, businesses will be able to claim deductions for capital assets, on top of the usual capital allowance deduction able to be claimed a part of the taxpayer's income tax return.
To allow business to benefit from the plan immediately, Mr English said GoGetta, based in Milton, would offer the tax allowance as a reduction to the rate of its Rent-Try-Buy solutions.
Through this initiative, customers can take advantage of this economic stimulus package every week while still holding on to their valuable working capital, and, importantly, it is a great way for the vendor network to increase sales in difficult times.
Mr English said that as part of GoGetta’s plan, equipment sold under Rent-Try-Buy with a value of $10,000 to $100,000 would have its rental rate reduced by 17 percent. Assets sold under Rent-Try-Buy valued at more than $100,000 would have their rent rate reduced by 33 percent.