- 35 per cent of Australian small businesses have not heard of the instant asset write-off
- 46% of small businesses that are aware of the write-off are likely to take advantage of the increased limit of $150,000
- One in two (46 per cent) of SMEs that intend to use the instant asset write-off will invest in IT equipment, a further 46 per cent would invest in a vehicle
- 41 per cent of SMEs would need a business loan to access the instant asset tax write-off
One of the pillars of the Morrison government’s stimulus package is the extension of the $150k instant asset write-off. Yet research by fintech lender OnDeck has found a third of businesses don’t know about the $150k tax break.
In response to the coronavirus crisis the government expanded the range of the instant asset write-off from $30,000 to $150,000 and expanded eligibility to include businesses with annual turnover below $500 million, up from $50 million previously. In the past week, the treasurer announced the expanded scheme, which was slated to end on June 30 will now be extended until December 31.
However many business owners look set to miss out on the savings with 35 per cent claiming ignorance of the scheme.
Oliver Wade, Head of Marketing & Partnerships, OnDeck Australia, said, it is concerning that over one million businesses could miss out on the opportunity to save on tax.
Of those businesses that are aware of the instant asset write off, 41 per cent say an online small business loan would be helpful to take advantage of the instant asset write-off.
“Preserving cash flow is always a priority for the SME community, so it makes sense for small businesses to use loan finance to fund business assets,” Wade said.
Want more? Get the latest coronavirus news and updates straight to your inbox! Follow Kochie’s Business Builders on Facebook, Twitter
Now read this