BUDGET 2020: 100% deduction can apply to charter boats
It was announced in the 2020 Budget that new business purchases can enjoy a 100% deduction on new business asset purchases in the first year of operation, providing it is operating by 30th June 2022. (See PAGE 9 of the FACT SHEET) https://budget.gov.au/2020-21/content/factsheets/download/tax_fact-sheet.pdf
This 100% deduction may apply to charter boats purchased by a business providing it is operational by June 30, 2022.
Here is an example of how it might work:
Bob's Boats Pty Ltd purchases a charter boat for $600,000, exclusive of GST, on 1 July 2021. Without temporary full expensing, Bob's Boats Pty Ltd would claim a total tax deduction of around $180,000 for 2021–22, with the remainder of the cost being depreciated over future years. Under temporary full expensing, Bob's Boats Pty Ltd will instead claim a deduction of $600,000 for the full cost of the charter boat in 2021–22, approximately $420,000 more than before. At the 2021–22 tax rate for small and medium companies of 25 per cent, Bob's Boats Pty Ltd will pay around $105,000 less tax in 2021–22. This will improve the company’s cash flow and help Bob reinvest and grow her business.
Two of our most popular charter boat power catamarans can be delivered within this time frame and we can assist with the placement of these boats in locations such as the Whitsundays, Sydney Harbour and Brisbane.
This is undoubtedly an amazing opportunity for those who can benefit from the scheme, which provides welcomed incentives for investment into the Australian tourism industry.
To learn more about Charter Boat Ownership programs <<CLICK HERE>>
Charter boat operators in the Whitsundays and Sydney are already noticing strong bookings as Australians rediscover their backyards, despite restrictions on interstate movements. To watch a full replay of Webinar Interviews with Trevor Rees of WHitsundays Escape <<CLICK HERE>> , or with Russell Waddy of Pittwater Yacht Charters <<CLICK HERE>>
DISCLAIMER: Before buying any charter boat, we ALWAYS recommend you talk to a specialist tax accountant for advice. We can provide you a referral for a tax accountant if you require. Multihull Central does not provide tax or financial advice.
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