SME owners call for asset write-off to be made permanent in Budget

The latest MYOB SME Snapshot surveying Australian business owners has found that making the $20,000 instant tax write-off permanent is the highest priority for small businesses in the 2018-19 Federal Budget, with company tax cuts rated second-highest.

The survey of 297 small business owners from across Australia reveals that:

  • Almost half the respondents (47 per cent) were not confident that the 2018 Federal Budget would deliver a positive outcome for SMEs, while only 16 per cent were confident.
  • When asked what measures they’d like to see in the Federal Budget, making the $20,000 instant tax write-off permanent was mentioned by 70 per cent of respondents, followed by lowering the company tax rate (52 per cent) and subsidies for businesses employing young Australians looking for work (42 per cent).
  • While over a quarter of respondents (26 per cent ) were not looking for any cashflow support from Government, almost half requested assistance with the instant tax write-off. Other support processes nominated by around a quarter of respondents included support for 30-day payment term guarantees, superannuation and subsidies come tax time.
  • Forty percent of respondents found the administration of superannuation to be easier than it was previously, while only 12 per cent found it harder. In addition, 11 per cent of respondents did not pay superannuation.
  • Almost half of SME owner operators plan to tune in to watch the Federal Budget live on budget night (45 per cent)

“The majority of small and medium business owner operators believe the greatest way the budget can assist small businesses is through a reduction of the business tax burden, primarily by making permanent the $20,000 instant asset write-off, but also through lower company tax rates. We have seen the popularity for the instant tax write-off in the past, and believe now is the time to draw a line in the sand and make it permanent,” said Tim Reed, CEO of MYOB.

“With small-business owner confidence at a three-year high as revealed by our research earlier in the year, it’s clear that we’re on track to create an environment where small businesses can truly succeed. Reducing uncertainty for SMEs in relation to the instant asset write-off is a simple yet effective measure to ensure their continued confidence,” he added.

SMEs have made it clear that they are looking for the Budget to deliver tangible benefits, such as fixed cost reductions and investment in programs to drive growth and innovation.

“All eyes will be on the outcomes – with 45 per cent of SMEs surveyed expected to tune in to the live Federal Budget broadcast – so this presents a great opportunity for the Government to support small businesses and show their commitment to continuing to back the sector,” Reed concluded.