Experts say Australian businesses are missing out on a multi-million dollar pool of government benefits because they are unaware of the entitlements or how to navigate the application process.
There are almost 300 lucrative government schemes available for SME activities such as expanding an enterprise, exporting, and research and development.
Although some benefits are only available in certain states and territories or for a limited time, dozens of financial assistance programs are available nationally with no cut-off period and, although being around for several years, are likely to continue. The Department of Science and Innovation outlines them and how to apply on its website.
If you are time poor, it may be helpful to engage an independent consultant to advise what financial assistance is available to your business. They will also be able to draft and submit your application.
Tax perk ignored
Financial experts say businesses are under-utilising the $20,000 Instant Asset Write-off with national research suggesting almost 80 per cent of businesses are not making the most of the opportunity in the lead up to 30 June.
Mark Chapman, Director of Tax Communication at H&R Block said businesses are confused about what they can claim under the scheme which was extended in this year’s federal budget.
Mr Chapman recommends business owners spend time researching the broad range of deductions available, which can even include website expenses such as computer servers and the provision of online shopping facilities.
Think of the Instant Asset Write-off as accelerated depreciation, as it allows your business to write-off assets immediately rather than depreciating them over time.
This week might be a good time to add value to your business with new capital so you can make the deduction in the current financial year.
Businesses with an annual turnover of up to $10m are able to access the concession which applies from 1 July last year.
This blog post is not formal tax advice and Canon Australia Pty Ltd is not authorised to provide tax advice and would advise business owners to speak with their professional advisors and accountants on tax matters relevant to their own circumstances.