New research reveals many small businesses are in the dark about an instant asset write-off benefit
May 23, 2013
Latest Colmar Brunton research commissioned by accounting software giant MYOB reveals one in three small scale enterprises remain unaware of an instant asset write-off for Australian businesses.
The write-off can assist with cash flow, enabling small businesses to instantly write-off the purchase of new business assets valued up to $6,500 rather than depreciating them over time. Cash flow has been a ‘top five’ pressure for small business operators since 2010.
MYOB commissioned independent market research firm Colmar Brunton to explore the use or intended use of the instant asset write-off for their business. Its national survey, which includes 966 small businesses – up to 19 employees – found:
· Almost one in three small businesses were unaware of the instant asset write-off.
· Almost one in three small businesses said they would ‘maybe use’ the write-off.
· More than one in five small businesses had not used or didn’t plan to use the write-off.
· Almost one in five small businesses had already used or planned to use the write-off.
MYOB Chief Strategy Officer John Moss says the small business instant asset write-off for new assets, which was increased last year to $6,500, can provide much needed cash flow for many small businesses.
“If a café purchased new tables and chairs worth $6,500 or less, the business can instantly write-off the full amount rather than depreciate,” he says.
“This helps to reduce their tax bill on company profits, and means more money in the bank for the business.
“Generating and maintaining strong cash flow is vital for small businesses. I encourage more business owners and managers to take advantage of the write-off to help contribute to the health of their business.
“For example, the write-off can assist in the investment of equipment that improves business productivity, cash flow and team engagement, such as cloud-based IT solutions.”