Are you a business owner? Particularly when you’re starting out, you might not have the capital for expensive purchases. This is where leasing can help. Leases are available for most aspects of business from staffing to cars, so read below for some information regarding what you can hire to help your business grow.
One of the more common leasing solutions for businesses is your premises. The cost of leasing commercial real estate is typically deductible and depending on your annual turnover you may also be exempt from paying GST on the rent. Whether it’s a small office to a large warehouse, leasing over buying means that your business can retain the ability to be mobile and relocate when your lease term expires or if option extensions are available, remain in the area you have established yourself. Renewal options should be negotiated prior to signing your initial lease to ensure you’re clear on your terms and responsibilities.
When you’re looking to organise a car through your business, there are several options you might pursue. Leasing a car for your business will typically involve you paying a monthly fee to a leasing company, which will deliver your selected car to you and collect it when the lease has concluded. This fee will often include rego, insurance and servicing over the life of the hire. Novated leases can be offered to staff as a way for them to save money on buying their own car and a perk of their employment. This can often involve salary packaging arrangements and will save on GST and many provide servicing options. A commercial hire purchase is when you’ll pay monthly instalments towards the car which you will own once paid in full. So while you are paying it off, it is considered that you are a hire of the vehicle, and some people will opt to take on a new lease instead of owing in order to upgrade to a new car. Interest is generally charged at a fixed rate which can be deductible along with a percentage of depreciation.
Other leasing options might include office furniture, whether it be to refresh your reception area or provide updated workstations for your staff. As with many leasing options, furnishing your workplace in this manner can be tax deductible and many companies will allow you to periodically upgrade to new equipment or even have the option to purchase outright to own yourself. Technological solutions for your business such as multifunction printers, projectors, conferencing equipment and computers can also be leased should you want to try out new tech or don’t have the capital to purchase outright.
Across many industries, permanent employment contracts are becoming less common. As a business owner, you might consider having contractors and freelancers in to help you complete certain projects or deliverables. You can also ‘lease’ staff through temp agencies which are popular for short term assignments or when the workload piles up and you need experienced help quickly.