Almost two-thirds of small firms want the tax break on their new purchases made permanent, as well as a further reduction in red tape and a simplification of business reporting processes.
First introduced in the 2015/16, federal Treasurer Scott Morrison extended the $20,000 instant asset tax write-off enjoyed by small and medium-sized enterprises until June 30, 2018 in the May budget.
“SMEs have consistently called for the government’s $20k instant asset tax write-off to be made permanent, and support for this measure continues to grow,” Tim Reed, head of business software provider MYOB said on Thursday.
“As such a vital contributor to our economy, it’s important that the government listens to the concerns of small businesses owners and provides policies which enable them to be successful.”
While the latest MYOB business monitor, a survey of 1000 Australian SME owners, acknowledges the positive steps taken by the government to reduce red tape, there are still a number of compliance issues making life difficult for SMEs.
Mr Reed said business owners want to do the right thing by their employees, but tax and payroll procedures are complex and time intensive.
Hiring new staff can also require a huge investment of time and resources, which could be better spent on other elements of managing their business.
“The government needs to consider measures that can make compliance processes more automated, less time intensive and a lot simpler,” Mr Reed said.
Firms are also calling on Labor to support the change in the threshold of a small business from $2 million to $10 million.
“Rolling this change back will be extremely detrimental to a large number of businesses,” Mr Reed said.