Published on 29/06/2016 by Punchmedia

Should Small Business Be Buying Up?

With the End of Financial Year (EOFY) upon us (tomorrow, June 30) will we be seeing retailers inundated with small businesses looking to make good on the federal government's tax deduction on purchases up to $20,000 before the weekend's election? The government won the hearts of retailers 13 months ago by announcing small businesses could claim an immediate tax deduction for every item they purchased up to $20,000, such as cars, fridges, coffee machines, tables and chairs, printers, hot water units and computers. The 100 per cent write-off was available to businesses with an ABN, earning less than $2 million a year however, with debt cheap but confidence lacking, new treasurer Scott Morrison this year widened the instant asset write off scheme to allow businesses with turnover of up to $10 million to access it from this Friday (1st July, 2016). Australian Retailers Association executive director Russell Zimmerman said while the scheme had put a rocket under sales last year, he hadn't "heard the same buzz this year." As we head into the second and final year of the scheme, it's not just the big businesses such as Officeworks that are encouraging small business to spend up. Lenders are getting in on the act. Online-only small business lender OnDeck is advertising fast loans specifically for small businesses seeking to take advantage of the scheme, and said loan applications had been "really strong" through May and June. At the bigger end of the scale, Commonwealth Bank said its asset financing activity this month was between 20 to 30 per cent higher than its monthly average, although June was typically a "very ​busy time for small business customers as they seek to fund assets prior to the end of the financial year." Some accountants don't like the scheme, arguing businesses should only be purchasing assets where there is a business need, and not because a tax incentive exists. * With The Age

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Curtis is a leading expert in the business-for-sale industry, serving as a senior content creator at anybusiness.com.au.

With a career spanning over fifteen years, Curtis has accumulated extensive knowledge in the domain of business sales, acquisitions, and valuations. His deep understanding of market dynamics and his ability to translate complex industry jargon into accessible insights make him a trusted resource for entrepreneurs and business owners looking to buy or sell businesses.

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