Small business owners smashed by COVID-19 are keen to find new ways to achieve growth for the rest of the year, with many looking at the instant asset write-off offered by the Federal Government.
Research, conducted by Officeworks, reveals that 71 per cent of small-business owners have expressed an intent to avail themselves of the instant asset write-off, a huge increase on the 31 per cent with the same intention this time last year. The study also found that 69 per cent of small-business owners will be changing their tax behaviour this year as a possible growth strategy.
The instant asset tax write-off enables small businesses to instantly deduct assets instead of having to claim deductions that range over a number of years. In response to the current crisis, the threshold for the instant asset write-off has been increased this year – businesses with an annual turnover of up to $500M are now eligible to deduct products up to $150K.
“According to our research, almost two in three SBOs have suffered a reduction in revenue, with 34 per cent having projects cancelled, 27 per cent making pay cuts and over a quarter downsizing their entire business during the pandemic,” Officeworks National Business Manager, Mark Kindness, said.
“The events of 2020 mean that, more than ever, small businesses need to leverage the support available to them, including initiatives like the instant asset write-off and make the most of tax-deductible products and purchases before 30 June.”
Despite the potential of the asset write-off scheme, 77 per cent of small-business owners are concerned about how their business will be affected beyond the COVID-19 pandemic, and only 40 per cent feel their business experience growth for the rest of the year despite of the availability of the tax deductions.
