With everything that’s happened this year it’s hard to believe that we’re in June already, and that means one thing: the end of financial year is approaching.
 
So it’s now time to start finalising your finances and plans from this year and set yourself up for the next one. And with so much already happening in the business world with Job Keeper and other government assistance packages, it is crucial you make the most of this time.
 
An important scheme to remember for any small business is the $10,000 grant that the Victorian and New South Wales governments are offering for businesses affected by the corona virus.
 
The ATO tells me this money is GST and tax free, so it’s an amazing opportunity for your business. Be smart with what you spend it on and use it to grow and invest in your business. In particular, look at things in your business that you have put off due to the crisis, or consider how you want your business to run in the next 12 months.
 
Maybe you want to have more of your workforce working from home long-term, and the money can go towards assisting with home office setups, or you may need to upgrade equipment to help your business operate more efficiently. Whatever it is, the end of the financial year plus this grant is the perfect time to do that.

It’s also important the business (rather than an individual) makes these asset purchases and claims that tax deduction. This is due to the instant asset write off scheme, which means you can purchase an asset worth up to $150,000 and claim the deduction immediately.
 
So rather than an individual buying a laptop or desk and being reimbursed by the business, it is better for the business to make the purchase and claim the deduction. This also means that any purchases stay in the name of the business if, for example, the employee later leaves the company.
 
This is a great opportunity to sit down with your employees, find out what they may need to work better, or to help the business grow, and use the grants and schemes available to set your business up for sustained success.