Latest MYOB research reveals one in three small businesses unaware of instant asset write-off
Almost one in three small business operators aren’t aware of the small business instant asset write-off, according to Australia’s largest business management solutions provider.
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 to medium 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.
|USE OF SMALL BUSINESS INSTANT ASSET WRITE-OFF||NATIONAL||SMALL BUSINESSES|
|Businesses unaware of the instant asset write-off||31%||29%|
|Businesses who said they would ‘maybe use’ the write-off||30%||31%|
|Businesses who had not used or didn’t plan to use the write-off||25%||22%|
|Businesses who had already used or planned to use the write-off||14%||17%|
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. 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. Many cloud computing systems avoid the need to spend money upfront but bring immediate benefit.”
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About the MYOB Business Monitor
Established in 2004, the MYOB Business Monitor is a national survey of small and medium business owners and managers, commissioned to independent market research firm Colmar Brunton. The most recent study ran in January and February 2013, surveying 1,005 operators from sole traders to mid-sized companies, representing the major industry sectors. The Monitor researches business performance and attitudes regarding areas such as profitability, cash flow, pipeline work, technology usage and the government. Note: the weighting of MYOB client and non-client respondents is reflective of overall market proportions.
Established in 1991, MYOB is now Australasia’s largest business management software provider. Its 50+ products and services have been employed by more than one million businesses in Australia and New Zealand. MYOB serves businesses of all ages, types and sizes, delivering solutions that simplify accounting, payroll, client management, websites and much more. With a network of more than 20,000 accountants and other professional partners, it provides the support and tools that help make business life easier. Today, MYOB is extending its solutions online and delivering innovation through cloud computing, enabling clients to make smarter connections with their business partners and customers:http://myob.com.au/smarterconnections.