MYOB reveals 7 in 10 small business owners want $20K instant tax write off made permanent in upcoming Federal Budget, still strong support for company tax cuts
26 Apr 2018
The latest MYOB SME Snapshot surveying Australian business owners has found that making the $20K 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 found that
- Almost half the respondents (47%) were not confident that the 2018 Federal Budget would deliver a positive outcome for SMEs, while only 16% were confident.
- When asked what measures they'd like to see in the Federal Budget, making the $20k instant tax write-off permanent was mentioned by 70% of respondents, followed by lowering the company tax rate (52%) and subsidies for businesses employing young Australians looking for work (40%).
- While over a quarter of respondents (26%) 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% found it harder. In addition, 11% 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%).
"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.
“With small business owner confidence at a 3-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.”
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% 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.”
For further comment or other information please contact:
Amy Kirkwood, Australia PR and Corporate Communications Manager, MYOB
M: +61 427 822 088 / E: email@example.com
MYOB Group Ltd (ASX: MYO) is a leading provider of online business management solutions. MYOB makes business life easier for approximately 1.2 million businesses across Australia and New Zealand by simplifying accounting, payroll, tax, practice management, CRM, job costing, inventory and more. MYOB operates across four strategic segments – Small to Medium sized businesses (SMEs), Practices (accountants, advisers and bookkeepers), Enterprise (larger businesses) and Payments. It provides ongoing support via many client service channels including a network of over 40,000 accountants, bookkeepers and other consultants. MYOB is committed to ongoing innovation and delivering efficiencies and growth opportunities for its growing client base across Australia and New Zealand. For more information, visit http://investors.myob.com.au/Investors or follow @MYOB on Twitter.