Small business still in the dark about the government’s instant asset write-off benefit

13 May 2013

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.”

Visit http://myob.com.au/EOFY for a summary of major tax changes, helpful tips and resources.

For MYOB product information, research results, customer service and more visit the MYOB Business Monitor webpage,The Pulse blog, MYOB Twitter or MYOB Facebook.

-ENDS-

For further statistics, comment or other information please contact:

Angely Grecia

MYOB Public Relations Consultant

02 9089 9071 / M: 0449 169 997 / 

angely.grecia@myob.com

Symon Madry

Haystac Public Affairs Senior Account Manager

02 8094 7779 / M: 0409 919 508 /myob@haystac.com.au

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.

About MYOB

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.