Almost 60% of Australian small business owners are planning to take advantage of the Federal Government’s recent changes to immediate asset deduction, while 10% have already made a purchase under the scheme according to a recently released survey.
Businesses can deduct the full amount for equipment and other assets worth less than $20,000 under measures announced in the 2015 Federal Budget in May.
According to Chris Ridd, Managing Director at cloud accounting firm Xero Australia, “[The fact that] so many small businesses are planning to utilise the federal government’s immediate asset deduction ability shows that the policy will provide much–needed help to small businesses to purchase the equipment they need to grow and thrive.”
The survey examined small business owners’ attitudes to the end of financial year (EOFY) period, and their opinions on changes to the federal budget and provides a snapshot of the issues currently facing small businesses driving the national economy.
The survey also found that more than half (52%) of Australian small business owners find tax time stressful, with two out of three (65%) indicating that EOFY is stressful because of the length of time it takes them to complete their small business tax obligations.
When asked what would make their lives easier at EOFY, 58% of small business owners wished for for an easier way of completing their taxes, while 40% wished for less paperwork.
The survey found that respondents who used cloud accounting software are spending the least amount of time of all small business owners doing their taxes.
“There is no doubt that the end of financial year creates added stress for small business owners,” Ridd said. “But the data also shows us that savvy business owners who switch from paper, spreadsheets, or desktop software to the cloud are able to significantly reduce admin and paperwork. This lets them focus their time, energy, and passion on what they love doing — building a great business.”