As the Coronavirus crisis deepens around Australia and across the world, we are committed to working evermore closely with you, our customers, to provide useful industry specific information and updates to assist you and your business.
GOVERNMENT ASSISTANCE TO BUSINESS
The Australian Government has made some significant Tax changes in the past week to assist businesses maintain activity and cash flow. There is in particular two measure that will encourage many of your customers to make their purchases now to take advantage of these incentives.
- Government Instant Asset right-off Scheme
The Government has updated its Instant Asset right-off scheme for all plant and equipment less than $150k in a single purchase, if it relates to end purchasers with a turnover less than $500 million. This will undoubtedly be an encouragement to many potential purchases who 100% right off a new asset as long as it is purchased before June 30, 2020.Another important points of the scheme allows customers can buy multiple units of an item, each can be treated as an individual purchase.
Please note that the sale and installation of any plant or equipment must be in a ready for use state occur prior to the cut-off date of June 30, 2020. Ensure you contact your Accountant to confirm how you or your customers might be able to take advantage of this scheme.
Government Asset Depreciate Scheme
For purchases greater than $150k, an additional deduction of 50 per cent of the cost of an eligible asset is applicable, with existing depreciation rules applying to the balance of the asset’s cost. So if the existing depreciation of an asset is 30%, it now becomes 80% due to the addition of the new 50% depreciation over the first year. This offer is limited to 15 month for assets first used or installed by 30 June 2021.
This scheme relates to all eligible assets — new assets that can be depreciated under Division 40 of the Income Tax Assessment Act 1997 (i.e. plant, equipment and specified intangible assets, such as patents) acquired after announcement and first used or installed by 30 June 2021. It does not apply to second-hand Division 40 assets, or buildings and other capital works depreciable under Division 43. Ensure you contact your Accountant to confirm how you or your customers might be able to take advantage of this scheme.
Download the Fact Sheets on these Government schemes.
We are increasing being asked about product supply shortages in the market, due of extended delays from affected countries, you’ll be pleased to know that you can specify or order AKS products with absolute confidence.
With a strong alternative supply chain, we’ve been able to secure all the critical components we need to ensure the smooth running of our local manufacturing facilities. Whilst some products will come at a slightly increased price, our focus is on ensuring we maintain our ability to deliver, helping you achieve on time completion. We’ve also stepped up our stock control management to ensure we can keep pace with demand should the Coronavirus crisis be with us for an extended period. If you have any question regarding standard product supply or would like to enquire about a product you are having trouble sourcing, call us on 1800 810 139.
URGENT PROJECTS AND DELIVERIES
Many customers are looking to bring forward completion dates if they can, ensuring they meet their customers expectations and maintain as much cash flow as possible. AKS can assist you in achieving this goal, particular with customer requiring Building Services Equipment, both Hydraulic and Fire. Talk to us as soon as possible to see if you order and deliveries can be ‘fast-tracked’, call now on 1800 810 139.
SERVICE AND MAINTENANCE
Our Service and Maintenance department will continue to operate as usual, although we are currently experience a larger than normal volume of requests, so we ask for patience. In addition, we plan to remain open for the duration of the crisis with an Emergency Maintenance Service for critical equipment and industries. We will be sending more information about this service to all our customers in due course, but if you do have any queries please call us on 1800 810 139 and ask for the Service Department.
PRICING AND QUOTATIONS
Due to the constantly evolving nature of this crisis we have reduced our ‘quotation expiration date’ to 14 days. This is mainly as a result of the volatility of the international exchange rate which has seen the Australian Dollar drop dramatically over the last month. All projects previously quoted at 30 days will still be available at the stated price up until the expiration date of the specific quotation.
Contact us on 1800 810 139 if you have any questions regarding the information above, or fill out your request in the web form below.