An Agricold might cost you less than you think
It’s this time of the year again – Tax Time is here. This financial year, businesses are given the opportunity to write-off eligible investments of up to $150,000 in full. So, if you are thinking about investing into your business to ultimately make it more profitable, now is the time to do so.
But what exactly does this mean for your bottom line in real life? The short answer is: it depends!
To help you work out what it might mean for you, we have set up the below example calculation that will give you an idea. Please note, this example is for illustrative purposes only and will change according to your circumstances (think turnover, profit, tax rate etc.)
Example case
Jimmy is an A/C Specialist and runs a small business as a Sole Trader. His assessable income is expected to be $180,000 for the financial year.
He is thinking of investing in an Agricold 4-in-1 station as he does a lot of mobile servicing as well as workshop-based work. Jimmy is considering his initial investment cost including tax deductions as well as the pay-off over time. Using Highgate Air’s savings calculator, by inserting the number of jobs he estimates he will do and loading in his hourly charge rate, Jimmy was amazed to see how quickly this investment would pay off for him. Let alone all the benefits it brings to his day-to-day work, such as ease of use thanks to the 7.5m long hose, status monitoring from his Android phone app or the built-in printer and record keeping functionality, to name a few.
In Jimmy’s case, for simplicity, we are working with an investment cost of $7,000. The ROI calculator showed him that he could save on average $686 per month or $8,232 over a year, using an Agricold over the conventional method for his re-gassing jobs. Note: this is based on an average of 5 gassing jobs per week.
How much could Jimmy save in tax?
At his income level he is paying the marginal rate of 37% income tax, so his tax deduction would be $7,000 X 37% = $2,590.
Thus, utilising instant asset write-off, Jimmy saves $2,590 in tax based on his $7,000 investment in Agricold, which makes the real investment cost come in at only $4,410.
The tax saving combined with his monthly saving using the Agricold (adding up to $8,232 p.a.) makes Jimmy’s decision to buy the Agricold a “no brainer”!
Agricold is only one example that qualifies for instant asset write-off. Talk to our team on 1800 15 15 15 to discuss your needs for tools & equipment or visit our web shop.
It is often said “Tools don’t cost, they pay!”
For an overview and in-depth walk-through of the Agricold’s functionality, watch this video.
Disclaimer: This information is indicative only and should not be relied on for your situation which could be different, and you should obtain professional Tax accountant advice before making a decision.