Businesses will not have to wait until tax time to benefit from the Federal Government’s new business tax breaks under a deal announced this week by equipment finance company GoGetta
Businesses will not have to wait until tax time to benefit from the Federal Government’s new business tax breaks under a deal announced this week by equipment finance company GoGetta.
The temporary business investment tax break – part of the Government’s $42 billion National Building and Jobs Plan – is designed to keep the economy moving by providing extra tax relief for companies buying capital assets.
GoGetta Managing Director Allan English says the plan will provide significant benefits for business and industry.
“Upgrading equipment can boost productivity, ultimately leading to long-term profit increases,” he says.
Under the government’s $2.7 billion plan, businesses will be able to claim deductions for capital assets, on top of the usual capital allowance deduction able to be claimed a part of the taxpayer’s income tax return.
To allow business to benefit from the plan immediately, English says GoGetta, which finances equipment Australia-wide, will offer the tax allowance as a reduction to the rate of its Rent-Try-Buy solutions.
“This way, customers can take advantage of this economic stimulus package every week while still holding on to their valuable working capital,” he says.
“Importantly, it will be a great way for our vendor network to increase sales in difficult times.”
Since its launch last year, GoGetta has provided flexible finance through its Rent-Try-Buy solution for companies Australia-wide that need equipment ranging from meat slicers and bread ovens to heavy haulage trucks and excavators.
English says that as part of GoGetta’s plan, equipment sold under Rent-Try-Buy with a value of $10,000 to $100,000 will have its rental rate reduced by 17 percent. Assets sold under Rent-Try-Buy valued at more than $100,000 will have their rent rate reduced by 33 percent.
For equipment valued at $50,000 the saving equates to about $115 a week, while for equipment valued at $150,000, rent reduces from about $2,076 a week to $1,384.
GoGetta will offer the special rate on contracts for new equipment settled from March 1, 2009 until June 30, 2009.
GoGetta is a division of Brisbane-based company Silver Chef, which has financed hospitality equipment for more than 20 years. Silver Chef listed on the ASX in May 2005.