We've just been handed about 1000 pages of good news. Well, sort of. As far as dentists might be concerned there really was no news in the 23/24 Federal Budget. It was Labour's first annual budget after nearly a decade in the cold and there probably wasn't ever going to be anything revolutionary, especially not for dental health. Sadly, there isn't too much for dental businesses either.
Come the 1st of July, newly installed assets will have to be depreciated over their usable lifetime. We've known for a while that unlimited full expensing is about to end. Still, it's sad to see the end of a scheme that has enabled so many dentists to upgrade their businesses into the digital age and unlock immediate cashflow in the process.
Temporary full expensing has been a significant boost for Australian businesses, particularly SMEs like most dental businesses, providing an opportunity to invest in new equipment like intraoral scanners, CBCTs and other CAD/CAM solutions without having to wait for assets to be depreciated over alonger period. This has allowed businesses to improve productivity and competitiveness, manage cash flow, and access the equipment they need to grow and thrive.
For dentists it has enabled them access to enhanced diagnostics, new treatment options and more productive workflows. Those who have taken advantage of this policy over the last few years have seen more than just clinical benefits too. We're hearing back from a growing number of clients that their earlier investments in new equipment are also providing some insulation against the gentle slowing in the economy. Their ability to provide more and better treatment options has made their businesses more competitive and attractive to patients who are still focused on quality dental care.
While the end of full expensing will require businesses to adjust their financial planning and investment strategies, we're still optimistic about the future for dentists. Australian businesses have shown incredible resilience and adaptability in response to the challenges of the past years, and there are still plenty of opportunities for growth and success going forward. A smaller scale version of this policy will remain for the next financial year for assets below $20,000. This will no doubt be handy for minor purchases but will preclude the majority of equipment required for digital dentistry.
A narrow window of time remains to take advantage of the cash flow benefits for large equipment. So, if you're looking at large equipment, now is the time to act. Get in touch with your local MoreDent solutions consultant to discuss how we might be able to help you before the end of financial year.
