Recent research has revealed that more than one-third of the nation’s SMEs are unaware of the temporarily changed parameters around instant asset write-offs.
On 12 March, the federal government raised the limit of the instant asset write-off from $30,000 to $150,000 and expanded eligibility to include businesses with annual turnover below $500m, up from $50m previously, until 30 June 2020.
Online SME lender OnDeck Australia has emphasised the opportunity this knowledge gap presents to brokers looking to strengthen their relationships with SME clients.
“This write-off is available to 3.5 million Australian businesses, so it is a concern that over one million enterprises could miss out on the opportunity to save on tax today while investing for tomorrow’s growth, because they are unaware of this tax break,” said Robbie Fidler, OnDeck Australia national broker channel manager.
According to Fidler, “time is of the essence”.
“With 30 June just around the corner, it is critical for brokers to connect with their SME clients, and get finance underway,” he said.
“In order to claim the newly enlarged $150,000 instant asset write-off, the asset needs to be in place and ready to use by 30 June 2020.
"From 1 July 2020, the instant asset write off is slated to reduce back to $30,000.”
Fidler stressed that, as a fintech lender, OnDeck is able to “fast track” funding with its accelerated application process – much of which can be completed online, with funds sometimes available in as little as one working day.