With June 30 fast approaching, a new study has found that less than half of the businesses surveyed expect to take advantage of the immediate write-off this year.
Last July, BIT reported that a survey found nearly 40 percent of small businesses surveyed would purchase assets because of the then-new rule that allowed for the immediate deductibility of most assets purchased for less than $20,000.
Now a recent MYOB Business Monitor survey has found that less than half of the small and medium-sized business owners surveyed expect to take advantage of the immediate write-off this year. It found that 30 percent have already purchased at least one qualifying asset, and another 14 percent intend to do so before the end of the financial year.
Those two surveys are quite consistent, but we are surprised that such a small proportion of small businesses have or expect to make such a purchase.
It seems odd that more than half haven't purchased assets this year, whether that's something as small as a printer or phone, an espresso machine or a commercial fridge, or something as expensive as a vehicle. Remember, what we're talking about is not a completely new provision but a temporary increase in the immediate write-off limit from $1000 to $20,000.
We're not suggesting that businesses should spend money just to get a deduction, but if you need some new equipment or other assets this might be a good time to buy them – or at least to have a conversation with your accountant about the right strategy for your business.