The Federal Government is backing businesses to help them navigate the economic impact of COVID-19. The instant asset write-off threshold will increase from $30,000 to $150,000 to support small to medium-sized businesses until 30 June 2020. If your business is in a position to invest, then now's the time to renovate. And as always, we have stunning fixtures to bring your space to life. So let there be light!
First, the details...
Is your business eligible?
While the scheme was previously accessible only to businesses with a turnover of less than $50 million, the government has increased this to $500 million, opening up access to an additional 53,000 businesses.
How long is the support available?
New or second-hand assets must be first used or installed before 30 June 2020, so better act fast!
What impact will it have?
It’s estimated to lower taxes paid by Australian businesses by $2.5 billions over the next two years. Not only will the scheme promote economic growth in Australia, but it’ll also enable your business to pay less tax and improve cash flow.
What are the finer details?
Your business can immediately deduct purchases of eligible assets costing less than $150,000. Because the threshold applies on a per asset basis, you can immediately write off multiple assets and claim a tax deduction for the purchase cost in the year the asset is first used or installed.
How to apply
Simply claim the deduction when lodging your tax return for the income year. It’s as simple as that!
And now, the fun part. How can you make the most of the instant asset write-off scheme?
If you're in a position to invest in your business (and the Australian economy), then now is a great time to renovate your business. Not only will you save money in taxes, but with many hotels, restaurants and retail stores closed to the public, it’s a great time to get ready for your grand re-opening!
After months spent at home, your customers will be ready for a day out of the house, and what better way to welcome them back than with beautiful new furnishings, furniture and lighting? If you’re thinking of renovating, here are a few lighting tips from the team at About Space:
First Impressions Count
Make a statement, whether it’s a big feature piece or creative lighting plan. If you want your hotel reception area or fine dining room to really make an impact, consider an oversized pendant or something sculptural.
Invest in Efficient Lighting
While we’re on the topic of saving your business money, why not switch out your halogen bulbs for LEDs? While a little more expensive upfront, LED bulbs are longer lasting, so you won’t need to replace them as often. They’re also much more energy-efficient, so you’ll reduce your energy bills, while also being able to promote your eco-credentials to your customers.
Balance ambient, task and accent lighting
If you’re thinking of a full reno, we recommend you don’t purchase anything until you carefully consider your overall lighting design. Hotels, restaurants and retail stores have different areas for different activities, and the lighting you use should reflect that.
To put it simply, lighting is divided into three types: ambient, task and accent lighting. Make sure your lighting plan includes all three.
For a hotel, you’ll need to consider that the most appropriate lighting for your lobby will be different from the lighting you use in hallways, rooms and function areas. Restaurants will need bright task lighting in kitchens and bathrooms, but warm ambient lighting in the dining room. Similarly, a retail store would most likely want bright ambient and accent lighting on the shop floor, and flattering task lighting in the changing rooms.
Lighting design is a mixture of art and science, and we’ve barely even scratched the surface here. In addition to the type of lighting, you’ll need to consider lighting temperature, CRI and a range of other technical aspects. But that’s a topic for another day, and another blog! In the meantime, if you need any help preparing a lighting plan, get in touch with the About Space team.
Keep it flexible
One thing to mention is that, outside of the lighting plan, you should make sure your lighting is flexible. Dimmable switches give you the freedom to adjust the lighting when you need to. So you can set the mood with some soft and moody lighting while your diners are eating, and turn it up to full brightness when the cleaning staff are in after you close up.
Ready to light up your business?
We love working with commercial clients, from shopfitters to architects, interior designers and business owners. If you’re thinking of making the most of this time by taking advantage of the instant asset write-off scheme, get in touch. We can help you create a comprehensive lighting plan to accompany your renovation. We offer trade discounts and can work with you on custom orders to create the right solution for any project specification. Get in touch.