SMEs unaware of tax rebate changes

The majority of small businesses are unaware of changes to the instant asset write-off scheme, despite being announced by the government in 2010 and having entered into force July last year.

According to a LinkedIn poll conducted by Intel, 51 per cent of small to medium businesses were not aware of the instant asset write-off changes, which enables small businesses to write-off depreciating assets costing less than $6,500 in the year the asset was used or installed.

The ATO states that the tax changes also allow other assets to be depreciated in a single pool at a 30 per cent rate, which applies from the 2012-13 income year onwards. The changes were originally announced by the Rudd government in May 2010 to strengthen the economy and make the tax system fairer and simpler for businesses.

The report also revealed that of the 49 per cent of SMEs who knew about the changes, 64 per cent indicated they would use the money saved from the write-off to buy new technology for their business.

For more information, visit the ATO website.

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