Positive hype about small Business $20k tax write off is BS!

Perth small business cash flow expert, Tracey Loubser has slammed the Federal Government’s $20k instant tax write off for asset purchases as all hype with insufficient substance to help SME’s grow, improve profit right now. 

Ms Loubser of Confident Cashflows says “Business Owners, especially Small Business Owners, don’t lie awake at night worrying about what tax write offs they are going to get in their tax return, in a few months’ time” 

“They are worried about paying wages next week, attracting leads, making sales, having enough cash in their bank account to grow their business”

Ms Loubser believes that the $20k tax write off has its benefits, but the delay of submitting your tax return has far too much delayed gratification. 

“The benefit of this write off is only realized after tax time. 

In these post boom days, WA business owners are looking for support right now, this week, this month, to help them grow their business” says Ms Loubser

Ms Loubser believes that this funding would have a much more of an instant benefit if it could be accessed in the short term. 

“My research has shown that one of the biggest challenges in small business is maintaining and improving a happy bank account. 

Its also shown me that understanding the “money side” of business is the most mis-understood area of business. 

If business owners could access “funded” on the spot support from their local accountant or cashflow expert, the benefit would be immediate, and would pay for itself over and over again” says Ms Loubser.

“Granted, the inclusion of up to $10million turnover businesses is a step in the right direction, but I think we should be doing more to support the lower earning businesses. 

The higher earning businesses can afford to spend $20k and purchase assets. The lower ones have to actually have $20k to spend to take advantage of the write off, and many of them don’t.

Its these smaller businesses that need our support more than ever before. They are holding on very tight to maintain their current staff levels. If they go broke, not only are their staff out there looking for jobs, but so are the business owners.

Again, more pressure on our unemployment levels” says Ms Loubser.

 Ms Loubser believes that business owners should:

•  Be cautious of spending money they don’t necessarily have, and be tempted in tax deductions, especially at year end.
• Think carefully about the short-term strain on cashflow to purchase assets, making sure a positive cashflow can be maintained.
• Be aware that any tax deduction could only put a third of that spend back in your pocket…and it won’t necessarily be cash. It may just ease the burden of tax at the end of the year.

 ENDS