As another financial year draws to a close, it’s a busy time for any business. But it’s also a good time to reserve a spot in your (Highgate Air) diary and pause to evaluate. Look at the bigger picture. How has the business been going? How do I maximise return for the business? What are my biggest challenges? Where am I at, where do I want to be and what do I need to get there? Looking at our industry, some of the big topics are (and will be for some time), the Elimination of Live Work, a term originating from the mining sector, but the concept and need for improved safety when working on vehicles and machinery holds true for any technician. The refrigerant market will be interesting to watch too, with import quotas of R134a decreasing rapidly in a bid to save the planet and, consequently, price increasing. Recycling refrigerant will become more important than ever, as is being equipped to service R1234yf.


In addition to the broader business-focused questions mentioned above, this time of the year is also a race to the finish line or the financial bottom line. Something that has been a big financial draw-card for eligible businesses in the past few years, the Instant Asset write-off, is ending for most companies at the end of June 2023. The ability to write-off the full expense of an asset this financial year rather than depreciating it over a number of years, can significantly reduce your income and lower the tax for your business to pay. This decreases the “true investment cost” of qualifying assets, such as A/C equipment, and it might pay off to bring forward an investment you would have otherwise looked at a year down the track. Simply because buying it this financial year might save you a lot of dollars.


We have created a sample scenario to showcase how much a business could save in tax when buying a 4-in-1 machine, purely for the purpose of demonstrating the scale of this tax benefit which is running out soon.


^ All information provided in this example is of a general nature and for illustration purposes only. It is not personal financial or investment advice. It does not take into account your particular objectives and circumstances. No person or business should act on the basis of this information without first obtaining and following the advice of a suitably qualified professional advisor. Underlying assumptions of this calculation: Business A/C Solutions has an aggregated turnover of $500,000 for the 2022-23 income year. The business purchases a new 4-in-1 machine (tool) for the hypothetical cost of $9,995, before 30 June 2023 and immediately uses it wholly for business purposes. In this instance Business A/C Solutions can deduct the cost of investment in the 2022-23 income year, using the Temporary Full Expensing Method (eligible businesses only and the business does not use the simplified depreciation rules). The income will be reduced by $9,995 and the tax saved would be $1,750 at a company tax rate of 25%. For details, visit