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How Small Gyms Can Save Big Money with Instant Asset Write-Off Scheme

Are you a commercial gym, small gym, PT studio, CrossFit facility, hotel, or any other business that offers fitness facilities to your customers? If so, you'll be excited to hear about the instant asset write-off scheme, a tax incentive program that can help you invest in new fitness equipment and grow your business. In this blog, we'll explain how the scheme works and how you can take advantage of it.

A gym and personal trainer with exercise equipment, including racks, weight machines, and free weights

ELIGIBLE ASSETS FOR GYM OWNERS UNDER THE INSTANT ASSET WRITE-OFF SCHEME

The instant asset write-off scheme applies to tangible assets that are used or installed ready for use in your business and cost less than the current instant asset write-off threshold, which is $150,000 for the financial year ending June 2023. As a fitness business owner, eligible assets can include all types of strength, cardio, and functional fitness equipment. However, it's important to note that the instant asset write-off scheme only applies to the cost of the asset itself, and not to any associated costs like running costs or maintenance.

HOW THE INSTANT ASSET WRITE-OFF SCHEME CAN HELP YOUR GYM SAVE BIG MONEY

The instant asset write-off scheme allows you to claim a tax deduction for the full cost of eligible assets up to the current threshold of $150,000. This means that if you purchase an eligible asset for your business that costs less than the threshold, you can immediately claim the full cost as a tax deduction in the year it was purchased.

For example, let's say you're a commercial gym owner and you purchase $100,000 worth of new fitness equipment for your gym in the financial year ending June 2023. You can claim an instant tax deduction for the full $100,000 in that financial year, which can significantly reduce your taxable income and help you invest in new equipment to grow your business.

The instant asset write-off scheme applies to each eligible asset you buy, not just your total spending. If you purchase multiple eligible assets that cost $150,000 or less in total, you can claim the full cost of each asset as an instant tax write-off in the year it was purchased.

A small gym with new exercise equipment, including Force USA Rack, Weight PLates, Hex Dumbbells

HOW TO TAKE ADVANTAGE FOR FITNESS BUSINESSES

To take advantage of the instant asset write-off scheme, you'll need to make sure that you purchase eligible assets for your business before the end of the financial year. Keep in mind that the scheme only applies to assets purchased and installed ready for use between 7:30pm AEDT on 6 October 2020 and 30 June 2023.

Make sure to keep accurate records of your purchases, including receipts and invoices, so that you can claim your deductions accurately on your tax return. If you're unsure about whether a particular asset is eligible under the scheme, you can consult with your accountant or the ATO for more information.

LAST CHANCE TO SAVE BIG: THE EXPIRATION OF THE INSTANT ASSET WRITE-OFF SCHEME

The instant asset write-off scheme is not a permanent tax incentive program and has an expiration date. The Australian Government originally introduced the scheme to support small businesses and encourage investment in new equipment.

The current instant asset write-off scheme applies to eligible assets purchased and installed ready for use between 7:30pm AEDT on 6 October 2020 and 30 June 2023. After this date, the scheme may not be renewed, which could bring uncertainty for small businesses looking to invest in new equipment. The ATO has not made any announcements of extending the instant asset write-off scheme for the following years, and it's likely we may not see this offer again!

It's essential for fitness businesses to take advantage of the scheme while it's still available and plan accordingly for the future. This means considering investments in new equipment before the end of the financial year.

Happy Gym Owner in front of commercial gym equipment

HOW GYM AND FITNESS CAN HELP YOUR SMALL GYM

Designing and equipping a gym or fitness space can be a challenging task. However, at Gym and Fitness, we strive to simplify this process for our customers. To achieve this, we have established a team of experienced gym equipment consultants who will guide you throughout the entire process. Our team comprises certified professionals in the health and fitness industry, and we specialise in setting up training areas for commercial facilities, schools, universities, high-performance centres, PT studios, and home gyms.

Our experts will collaborate with you every step of the way, from design to financing and delivery, and even installation if necessary. We pride ourselves on using top-quality international brands and over 20 years of experience in serving thousands of satisfied customers. Rest assured, we can provide you with a customised gym fit-out that meets your facility's requirements.

To begin your journey with us, please get in touch today or view our commercial equipment range.

*The information provided on this blog is not intended as professional advice and should not be considered as such. Gym and Fitness is not a licensed accountant or financial advisor and therefore cannot provide financial or accounting advice. Any decisions you make based on the information provided on this blog are solely your own responsibility.


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