The opportunity to write-off $150,000 per asset this financial year is being overlooked by about 75% of small-to-medium-sized businesses in lock-down, despite it being five times the amount usually available, according to SME Finance Group founding director of specialist business leaders Michael Pratt says.

The group is finding that the majority of eligible companies are concentrating on other government COVID-19 incentives.

“Companies are forgetting the $150,000 write-off per asset available to them through the ATO,” Michael says.

“In many instances they will need to organise finance, order the goods and have them in place by 30 June to qualify.

“So we urge them to work with their accountants and financiers now to maximise this opportunity appropriately before it’s too late. There could millions of dollars available to them to invest constructively that they’ll potentially miss out on.”

Small-to-medium-sized businesses with less than $500 million in turnover have just eight weeks left to invest the extra $150,000 per asset available to them for instant asset write-offs through the government’s 12 March 2020 stimulus package.

The government has committed to spend $700 million this year to increase the instant asset write-off to encourage more businesses to buy big-ticket items such as cars and equipment. It’s one of the many measures now in place to support business through this uniquely challenging time.

“Maybe it’s because they’ve not had the time needed to really consider what they need to support and grow their business in terms of an injection five times what they were originally considering at the start of the financial year,” Michael says.

“Maybe they don’t know how to go about securing the monies? Especially smaller private companies with a turnover of less than $50 million that have likely structured their business financing in a way that’s unique to them.

“They often haven’t been given the data they need by their accountant to tick all the necessary boxes to help ensure their applications are successful through many traditional sources.”