Dental Practices – Invest in New Equipment for Tax Benefits

An Australian Government Budget 2017 proposal is bound to bring cheer to dental practices across the country. Now, they can upgrade existing equipment to the extent of $20,000 and get immediate tax benefits through depreciation relief.

The scheme for accelerated depreciation arrangement was first formulated in 2015 and was allowed to business having a turnover of up to $2million annually. However, this threshold was increased to $10 million in March 2017 when the Senate approved the first tranche of the Federal Government’s company tax cut plans.

The net result is that businesses with a turnover of less than $10 million annually can purchase assets to the tune of $20,000 and immediately claim that amount as a tax deduction provided the assets are installed and ready for use by June 30, 2018.

However, it is a onetime measure. From July 1, 2018, this enhanced immediate deduction benefit will no longer be available and the limit will revert back to the old level of $1,000.

This has come as a huge relief to businesses as it has been one of their long pending demands. Industries cutting across sectors have welcomed this move and have advised their units to take advantage of this scheme within the current financial year for which it is applicable.

One of the first sectors to get off the block in this regard is the Australian Dental Industry Association (ADIA). It has counselled all dental practices in Australia to make investments in new dental and oral health care equipment to the extent of $520,000 to get benefits from the Government’s recently announced tax concessions.

By doing so, dental practices tend to gain considerably.

It is an ideal opportunity to update existing equipment and buy ones that are run on the latest state of the art technologies. Thus the quality of dental care will get a boost. Those who have completed their dental technology courses in Australia lately stand to gain a lot too. Dental technicians are responsible for construction and repairs of dentures and other orthodontic appliances including crowns, bridges, partial dentures, pre- and post-oral and maxillofacial surgical devices. All this requires substantial investments in expensive dental equipment which dental technicians can do now and write it off fully as depreciation immediately.

AIDA CEO Troy Williams is especially upbeat on this score. He said, “ADIA encouraged the Australian Government to extend the life of this important tax concession beyond 30 June 2017, and it’s pleasing that this has occurred. Dental practices nationwide can now plan for their investment in new equipment during the coming financial year. When introduced in 2015, these accelerated depreciation arrangements were initially made available to businesses turning over up to $2 million annually. ADIA was pleased to see this threshold increase to $10 million when the Senate approved the first phase of the federal government’s company tax cut plans in March 2017.”

For assets valued above $20,000, the existing rules remain in place and they can continue to be placed in the small business simplified depreciation pool and be accounted for at 15% in the first accounting year and 30% in subsequent years.

Report on “Medical Aesthetics 2017 Global Market Driver, Challenges, Trends & Forecast to 2020”

The latest market research report “Medical Aesthetics 2017 Global Market Driver, Challenges, Trends & Forecast to 2020”published by WiseGuyReports.Com Publish is definitely an eye opener for the medical aesthetics business and elaborates on the industry environment come 2020.  

An interesting report that raises some curious points, it is run by market research analysts conducting an in-depth study of the industry and trends. Here are a few interesting points that can be drawn from the final report:

Experts predict that the global medical aesthetics market is will grow at a fast rate at a CAGR of about 7% by 2020, with certain factors fuelling this growth.  

  • The first is the ageing population who is more aware of the cosmetic and plastic surgery business and desiring opportunities to look younger and fitter.
  • The second is the growth in income levels which has directly resulted in higher disposable incomes. Thus, people can and are more willing to splurge on plastic surgeries and beauty treatments.
  • The third and arguably the most important is the advance of technologies and innovations within the medical aesthetics industry. This is easily demonstrated with laser and ultrasound-based equipment, which is predicted to take the industry to greater heights during the reviewed timeframe. This technology is found in a range of devices, including IPL machines, Microdermabrasion machines, high intensity focussed ultrasound, Transdermal Focused ultrasound, fat reduction methods and others techniques that facilitate skin rejuvenation and permanent hair removal treatments. These devices have changed the medical aesthetics playing field, primarily because the procedures are non-invasive in nature reducing the downtime for patients. This convenience has also increased the number of people wanting treatments to look better, younger and leaner.

The next important part of the report is broken down into 4 product categories within the medical aesthetics sector.

Including: 

  • Laser-based medical aesthetics
  • Facial aesthetics
  • Breast Implants
  • Dental implants

 The market segmentation analysis of these 4 reveals an interesting find; that the dental implant section currently at a market share of 34%, is forecast to grow at the fastest rate, far in advance of the other three. This is typically attributed by professionals to the increasing importance being placed on perfect smiles for beauty and the increase in oral complications among the younger beauty-conscious generation.

 The Americas beauty treatment market is also slated to grow the most with the report predicting that it will be more than 54% in the period until 2020. As the aesthetic capital of the world, this fact is not surprising and can be placed at the door of the facilities delivering invasive and non-invasive procedures. With the influence of Hollywood, big stars and the increase of beauty treatment tourists, the industry beats the other regions of the world by sheer numbers.

 Further, while the market is highly fragmented now with numerous players, there is bound to be a certain degree of consolidation in future with several vendors, such as Allergon, Mentor, Cynosure, Syneron and Straumann, emerging as the key players in the medical aesthetics business by 2020.

French Presidential Elections

Presidential elections are big news today. First, the media speculation on Donald Trump’s candidature was horribly inaccurate and now the French presidential elections have captivated international commentators because of the high stakes.

The election process in France is rather simple considering countries like the USA, with a much more complicated process. Voters simply go to the polls in the first round to elect a President. If one candidate gets more than 50% of the votes polled, he is declared elected. If not, two candidates who have received the highest votes face off against each other in a second round. The winning candidate then is one who receives more votes in this round. In elections held this year on 23rd April no candidate received more than 50% of the votes and hence there will be re-polling on May 7th again.

The candidates this time around present a mixed bag, from the far right through to the far left. The first noteworthy candidate is the incumbent President Francois Hollande who is not considered a likely selection this time, as he has polled badly for years. His Socialist Party candidate Benoit Hamon is considered to be too far left for the common public.

The dark horse in this race has been Emmanuel Macron, the former Economy minister. With no political party backing him, he has struggled his way to the front and is now the lead contender after the first round with 23.86%. Centre-right candidate Francois Fillon has not made much impact with the French. Surprising many, Marine Le Pen the anti-EU leader of the Populist Front National at the far right of the spectrum, has surged over the others and has garnered 21.43 % of the votes in the first round.

Come May 7th, it will be a faceoff between the young Emmanuel Macron and Marine Le Pen. It might be a moment for the history books with a distinct possibility that the far right will win the elections for the first time in France’s Presidential history.