The Good Guys is anticipating the more than two million small businesses operating across Australia will make targeted purchase decisions to capitalise on the Federal Budget announcement of all items under $20,000 attracting a tax deduction before June 30.
The new $20,000 threshold represents a significant increase on the now outdated $1000 asset write off limit and will be available to all businesses with an annual turnover of under $2 million.
Michael Ford, CEO, The Good Guys said his business is expecting technology and appliances to be on the top of most small businesses pre-June 30 shopping lists in light of the Government’s announcement.
“Now more than ever, the benefits of small business operators upgrading or buying new items far outweigh the cost,” Ford said.
“With a wealth of new technology recently hitting the market, we are anticipating increased sales in performance notebooks, Macs, multi-function printers, smart phones, monitors and 40” to 60” TVs as many small business owners seek to upgrade their connected home office.
“In the lead up to June 30, we also fully expect the traditional stocktake purchases to extend to reverse cycle air conditioners and equipment for office kitchens and tea rooms such as fully automated coffee machines, fridges, sandwich presses, and microwaves,” said Ford.
In his Budget delivery, Federal Treasurer Joe Hockey encouraged small business operators to take advantage of the two year scheme stating “anything under $20,000 is immediately 100 per cent tax deductible.”
With the weakened Australia dollar and waning confidence in the economy, many small businesses have been running leaner and deferring purchases, or making do with old products in their workplace.
Ford believes the 2015 Budget should alleviate a lot of the pent up demand for higher end technology and appliances among small businesses.
“The Federal Government has laid the groundwork for small businesses to invest in themselves, so it’s a great time for them to ascertain what they can buy in this period to take full advantage of the tax benefit announced by the Federal Treasurer this week,” he said.
The Federal Government’s $1.75 billion small business scheme, will run until June 30, 2017.