What do businesses need to know before buying for EOFY?
During the 2023-24 financial year period, the temporary total expenditure method is no longer available, but the ‘instant pipeline of assets’ has been reinstated to allow eligible businesses to claim an immediate deduction for the business part of the cost of an asset in the year period in which the asset is first used or installed ready for use. Small and medium-sized businesses with a turnover of less than $50 million can claim a deduction for business-related assets.
According to Mr. Taxman, there are three golden rules about what makes a valid business deduction based on Australian Taxation Office guidelines.
“The expense must be business-related, only the business part of an expense that is a mix of personal and business can be claimed, and you must have records such as receipts to support your claims,” says Dr Raftery.
“In the run-up to EOFY, consider investing in people, technology and services to further drive your business’s productivity and increase your employees’ well-being.”
Invest in comfort for your people.
Investing in new workplace furniture can help attract and retain talent by showing employees that their comfort and well-being is important. This can increase employee satisfaction and increase productivity. In the furniture space, new sit-down desks and ergonomic chairs can improve comfort and support healthy posture. Also look to invest in accessories like footrests, memory foam backrests or seat cushions.
“If your business is expanding, you may need additional furniture to accommodate new staff. The EOFY sales period is an ideal time to invest,” adds Dr Raftery.
Make collaboration seamless.
As technology evolves, don’t be left behind by outdated technology that hinders productivity or causes downtime due to incompatibilities or breakdowns. EOFY is also an opportunity to improve connectivity in the office by investing in meeting room setup technology. In general, expenses for items such as computers, software, smartphones, tablets, printers, and other technology-related equipment can be claimed as business expenses.
Make your kitchen a hub.
The EOFY sales period also provides an opportunity to ensure kitchen facilities are functional and inviting, encouraging employees to use these spaces to work, take breaks and catch up with colleagues informally.
“Replicating appliances commonly found at home can improve satisfaction and further help employees save money by preparing their meals on site instead of buying lunches. Review the quality, features and life cycle of your appliances such as coffee makers, toasters, or microwaves to improve the experience of your employees! adds Dr. Raftery.
Dr Raftery adds: “Don’t wait until the last minute. Anytime between now and the end of the financial year is a good time to get organised. Make sure your EOFY purchases are planned and finalised. well in advance of the next June 30 deadline and remember to save your receipts for claiming and record keeping.”
Shop our EOFY sale and browse our wide selection of office, kitchen, technology and furniture supplies.
Disclaimer: This information is of a general nature only and does not constitute professional advice. You should seek professional advice in relation to your particular circumstances before acting.