SmartCompany November 1, 2018
The Morrison government’s instant asset write-off forms a key part of its small business agenda, but new research has revealed many SMEs are unaware the program even exists.
A survey of 864 small businesses published by American Express this week shows almost half (47%) are unaware they’re able to write off a purchased asset worth $20,000 or less in their tax return for that financial year.
Further, only 52% of the businesses surveyed that are aware of the scheme say they’ve actually claimed the deduction.
The figures have given voice to the concern that despite lobbying to make the instant asset write-off permanent many aren’t using it to its full potential.
According to ATO data, almost 350,000 businesses made a claim under the program in 2016-17, but the average amount claimed sits at about $11,000.
Putting those figures into perspective, Australian Small Business and Family Enterprise Ombudsman data published earlier this year found there were 1.98 million Australian businesses with turnover less than $2 million a year in 2014-15.
While the government has created a myriad of programs for up-and-coming and established businesses to access initiatives, small business owners complain the system is complex and poorly advertised. READ MORE: https://www.smartcompany.com.au/finance/tax/small-business-instant-asset-write-off-research/?utm_campaign=SC&utm_medium=email&utm_source=newsletter