Get the ATO to contribute to your new office! – save tax now while renovation & refitting!
Did you know that office fitouts & renovations typically are not very tax eﬀective?
Realistically, did you know your office ft out is an expense… it’s not really an asset to depreciate over
the next 40 years? Your accountant would know that business cycles are completely out of sync with the ATO allowed ‘asset lifecycle’s – which today, are irrelevant long-term depreciation not in keeping with today’s changing business world”
You wouldn’t buy 10 years’ worth of petrol or electricity – they are tax deductible expenses, right? Your new office can be too! Ask yourself, why use capital or a loan for your new office and only ever get to claim a little interest, and a little depreciation over many years?
Why not lease your Fitout just like a car or a photocopier…? Save endless messy depreciation schedules abound with diﬀering amounts allowed for ‘deemed lifecycle’ of diﬀerent asset classes create and endless and drip fed tax benefits.
Some business leaders understand this in principle and get the landlord to the Fitout first and factor into the lease.
Disadvantages of landlord packaged fit outs are:
1. Higher than fair lease costs,
2. If you already have a lease, you have little power to negotiate a competitive deal with your landlord.
3. Limiting when needs change and reconfiguring is required because ‘it’s the landlord’s ft out’
4. Future disputes during landlord’s condition report inspections down the track for ‘fair wear and tear’
5. Expensive make good disputes at end of lease, as it expands the tenant obligation over condition of ALL items.
The bottom line is, leasing your ft out saves tax now & you retain control
Did you know you can forward all the above long-term depreciation items by leasing an office fitout?
A 5-year lease with zero residual leaves you with your full Fitout to enjoy and all the tax savings enjoyed in the 5 years – beats waiting around for 40 years!
This is smart, cleans up the balance sheet and allows otherwise ‘capital’ items to be treated as expenses.
Focus on accounting for growth – to project the future, not just a backward look though the rear-view mirror.
To find how we can help you more – call us on 0439 002 575 or email [email protected]