With the end of the financial year approaching, many businesses are looking for opportunities to save on their tax bill. What better way than to take advantage of the 20k instant asset tax write-off to upgrade your tech and supercharge your business for the new financial year?
If you are a small business owner, investing in the latest tech can be a costly expense and understanding the right tech to invest in can often be confusing. According to Anna Torres, Marketing Director for Australia & Southeast Asia at Intel, there are a few factors you should consider before taking the plunge.
Anna told me, when it comes to upgrading your tech you need to know where to begin.
You might start off by understanding why you need to upgrade in the first place. Anna suggests upgrading your tech every three years, why? Tech that is more than three years old will start slowing you down. Your devices will be less secure, and your staff will be less productive.
If productivity is important to your small business – and let’s face it, what small business doesn’t struggle with productivity – it can be much more affordable to upgrade rather than grapple with outdated tech.
Our resident tech expert Val Quinn also agrees with this sentiment.
“Old machines are frustrating because they’re slow and you can’t work as quickly on them and can’t get as much done. Old tech costs more to run. You spend money to replace parts, which is also a major time drain. Upgrade to a new computer powered by the latest 8th generation Intel Core processor and you’ll save time and money. Staff can also be more than two and a half times more productive on new equipment,” says Quinn.
“Old tech can also take a toll on staff morale when the technology they are using at home is newer than the tech in the office.”
Convinced you need to upgrade? Here’s what you need to know. The government’s $20k instant asset write-off applies to small businesses with a turnover under ten million. If you buy new equipment up to the value of $20k (for each purchase) you can write it off instantly.
You can transform your business with this type of purchase. Of course, forking out the cash for these big-ticket items can be daunting to many small business owners, but these days there are a number of different financing options that can help you spread out the costs.
Just remember the cost of the item must be $20,000 or under (inclusive of GST) and even if you are registered for GST and claimed this GST back then your threshold doesn’t include the GST.
You regularly update your business plans and business objectives, so why wouldn’t you update your tech too? Trying to keep your old technology up and running past their use-by-date will cost you in the long run. So why not consider upgrading to the latest laptops or 2 in 1s? Your team will have the technology it needs to perform at its best and your business will benefit from working smarter not harder.