With the end of financial year fast approaching there are not only some great deals on air conditioning units currently available but also some tax incentives that may make now an ideal time to invest in an upgraded air conditioning system for your workplace.
So, what type of perks, breaks and incentives are available?
The end of financial year brings with it some significant savings, with many air conditioner retailers looking to reduce the volume of stock they hold by June 30. That means there may be some good deals to be had on heating and cooling systems for the office environment.
But even if not, for businesses looking to invest in equipment there are tax breaks to enjoy and utilise prior to June 30.
$30,000 instant tax write off
This year the Australian Taxation Office has extended the instant asset tax write-off, and your new air conditioning system could be eligible under this scheme.
The ATO notes the threshold increased from $20,000 last financial year to $30,000 in 2018/19, and this has been extended to 30 June 2020.
“The instant asset write-off now also includes businesses with a turnover from $10 million to less than $50 million,” they state.
“These businesses can claim a deduction of up to $30,000 for the business portion of each asset (new or second hand), purchased and first used or installed ready for use from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020.
“Businesses with a turnover of up to $10 million can also claim a deduction for each asset purchased and first used or installed ready for use, up to the following thresholds:
- $30,000, from 7.30pm (AEDT) on 2 April 2019 until 30 June 2020
- $25,000, from 29 January 2019 until before 7.30pm (AEDT) on 2 April 2019
- $20,000, before 29 January 2019.
They also explain if an individual asset costs $30,000 or more, it can be deducted over time using the small business pool or the general depreciation rules, depending on the business turnover.
Is air conditioning eligible?
Inside Small Business states air conditioners are indeed eligible for this tax write-off, but it is important your check with your accountant or a relevant professional to ensure it will not impact your cash flow.
They explain air conditioning falls under business-related equipment alongside other assets like:
- general plant equipment
- office or shop furniture and fittings
- display screens, kitchen equipment, signage
NSW Government energy efficient air conditioner incentive
On January 1, the NSW Government introduced an energy efficient air conditioner incentive, offering small businesses a rebate of up to $1000 when they replaced their air-conditioner with a more energy efficient model.
Unfortunately, that scheme has currently been placed on hold, with an update of when it will resume yet to be released.
If air conditioners are on your business wishlist this financial year or next, we would urge you to contact us for an insight into the system that would best suit your business requirements, and also talk to your tax professional to understand what incentives apply.
Servicing the greater Sydney region, Climacool Air Conditioning prides itself on superior service and quality workmanship.
We work with the leading brands in the field of heating and cooling, and have an enviable reputation for meeting the needs of our valued commercial clientele in air conditioning installation, service, and repairs.