On 22 March 2020, the government announced a second wave of Stimulus Package incentives.
Forming a range of stimulus packages specific to each tax jurisdiction, these measures are designed to help bridge the economic gap the novel coronavirus, COVID-19, is creating. The various packages, when applied correctly and in combination with sound business management, will hopefully sustain businesses for the duration, keeping workers employed and our economy afloat.
Kevin Butler, General Manager of Australia’s leading payment solution provider Zenith Payments, has shared his top tips for Australian Businesses this End of this Financial Year.
Kevin Butler’s top five tips for Australian businesses this EOFY
1. Think about what purchases you could make before 30 June this year – and use B2Bpay to pay by card so you can ‘buy now, pay later’ as your card statement won’t be due until next financial year.
2. Read up on the now $150,000 instant asset write off scheme. One of the best tax breaks for small to medium sized business is the instant asset write-off, which is a great way for businesses to acquire capital assets and obtain an immediate tax deduction. As part of the Federal Government’s recent Coronavirus Stimulus Package, the Instant Asset Write-Off threshold has increased from $30,000 to $150,000 (net of GST) per asset acquired and now applies to businesses with an aggregated annual turnover of less than $500 million.
Some of the items that you could look at purchasing before 30 June 2020 include:
- Cars, vans and utes
- Fittings and fixtures
- Plant and machinery
- Computers and laptops
- Security systems
The asset must be used, or installed ready for use by 30 June 2020. This is particularly important you purchase the asset just before the end of the financial year. For example, if the asset is purchased say on 29 June 2020, but not available for use in the business until 7 July 2020, then the business loses the entitlement to claim an immediate tax deduction for the asset in the 2019/20 year.
3. Check out Corporate Prepaid Gift Cards, which is a great way to use up marketing budgets with branded pre-paid credit cards you can use to reward staff or customers in the next financial year.
4. Use B2Bpay to pay for all business purchases and:
- Reduce cash flow concerns by using your credit card’s up to 55 days interest free period;
- Earn credit card reward points;
- Pay ATO bills and earn full credit card points;
- Receive Qantas Points on EOFY purchases and all other expenses
5. Get some advice from your accountant and check out how your business can benefit. You can even earn credit card and Qantas Points when you pay your accountant using B2Bpay!
“The end of financial year is a great time to do some shopping for your business. Businesses can take advantage by maximising tax deductions before the end of year. What’s more, the government’s $150,000 instant tax deduction initiative is a great tax break for small businesses.”
“Cash flow can often limit the ability of businesses to take advantage of these tax breaks. That’s where B2Bpay comes in by allowing you to use your credit card’s interest free days to hold your cash longer” says Kevin Butler, Zenith Payments General Manager.
“Powered by Zenith Payments B2Bpay is an innovative solution that allows small businesses to pay all business expenses via a single, secure online portal.”
“Using B2Bpay will negate the usual loss of points that occurs when paying the ATO directly by credit card. Instead our customers are rewarded with a much-needed silver lining at tax time with full credit card points and additional Qantas Points too.” adds Kevin Butler.
With B2Bpay, business owners can maximise credit card rewards on all payments in addition to boosting cash flow, productivity and tracking of business expenses.
Update: May 2021 – Earn up to 30,000 bonus Qantas Points this EOFY#