The Upside to your Fitout costs
How you can Benefit
If you're a business owner or a tenant, then don't despair at what your shop, office, restaurant, bar or medical fitout costs are.
There's an upside.
We work with so many business owners who have to budget for not only costs of desks, counters, tiles and carpets but also wrestle with stretching their dollars to stock the fridges & shelves,pay rent and insurance or deal with signage and security systems when they start up or renovate their commercial premises.
It's always a tough call when you do the sums and then see how the bottom line ends up.
Cash Flow is King. Money going out is not cash flow.
So where's the upside?
It's all about a 3 letter word: Tax
"Upside" and "Tax" aren't usually used in the same sentence!
Does anyone actually know anyone who enjoys paying or even talking about paying tax?
Well, it is a talked-about topic in this sense: regardless of the type of business premises you have, you should be able to claim tax deductions on several items you've paid for in the fitout and improve your cash flow in the process.
How? You can claim Deductions in the form of Depreciation for many items in your fitout.
You can claim deductions for your plant, equipment and fixed items depends on whether you're an owner or tenant.
Whichever hat you're wearing, it means you are entitled in some way to claim.
As owner, you've paid for structural and fixed items in the building.
As tenant, you've probably bankrolled removable plant and equipment like window coverings, tables, desks, counters, display shelving and so on.
As all of these building items age, they can be depreciated based on their effective life span set out by the Tax Office.
Your tax agent or accountant will know the ropes on this if you're not sure.
Best thing to do is to have a Depreciation Schedule drawn up of all relevant items.
Either the cost of renting or holding your property will be on the way down.
So how great is that?
Take the steps to improve your cash flow now!