Understanding how acc dep affects tax benefits and profitability

No solar With solar

Say Profit 1000 Profit 1000
Tax @ 30% 300 Can write off 80% 400
Net profit 700 Taxable profit 600
Tax @ 30% 180
Net profit 820

Your Gain 120 Your tax outflow comes down

No Solar With Solar

Profit 30000000 Profit 30000000

Can write of 80% of

the solar system
Tax @ 33% 9900000 cost in Year One 12800000

Net Profit
(After Tax) 20100000 Taxable profit 17200000
Tax @ 33% 5676000
Net Profit 24324000
Tax saving 4224000
Cost of Solar 500
Acc dep 400
400 800
1000
800

No Solar With Solar

Cost of Solar 16000000 Profit 30000000 Profit

Can write of
80% of the
solar system
Tax @ 33% 9900000 cost in Year One

Net Profit
(After Tax) 20100000 Taxable profit
Tax @ 33%
Net Profit
Tax saving
30000000 Cost of Sol 16000000

12800000

17200000
5676000
24324000
4224000