Asset write-off scheme explained

I'm going to make it simple for you. You are likely to benefit far better by making your asset purchases in the first half of this year rather than the second half.

So if you're considering buying a CAD-CAM system for your practice or Lab, now would be a great time to do it. However, like I always say, "Just because you can. you don't have to." In other words, don't buy something for the sake of it or commit to a workflow that you can't handle.

So, what is the Instant Asset write-off?

The instant asset write-off incentive allows eligible businesses to claim an immediate deduction for certain costs relating to depreciating assets in the year the asset is first used or installed ready for use. That means the asset needs to be ready for the business to use.

What is classed as a depreciating Asset?

A depreciating asset is an asset that has a limited life expectancy (effective life) and can reasonably be expected to decline in value (depreciate) over the time it is used.

For example: Intraoral Scanners, CAD-CAM systems, computers, furniture, lab equipment etc

When does it end?

30th June 2023

What happens after it ends?

Normal tax rules will apply, which means you will need to depreciate assets over their effective life, rather than being able to write them off immediately. Hence, the tax deduction will be spread out over a much longer period of time.

Can I still finance the Asset purchase?

Yes! As long as you set up the correct type of loan under the correct entity you can finance the goods and still receive the tax benefit. Your interest cost on the loan would also be tax deductible. You can reach out to Ali from Credabl to run through your repayment options via [email protected]?

Is there anything else I need to know?

Goods need to be used or installed ready for use by 30th June 2023. Ideally you would also have received the invoice dated prior to 30 June 2023.?

Visit the ATO website for more information.

Thank you to Credabl & Mitchell Walmsley from Affluence Charted accountants for your contribution in providing intel on the current tax benefits available to dentists. If you are unsure of your eligibility, visit the ATO website, chat to your accountant or if you need to engage accounting advice you can reach out to Mitchell at [email protected]

Note: Please note XYZ Dental is not a registered tax agent and is not authorised to provide tax advice. You should consider your personal circumstances and seek specific tax advice.