Leading non-bank business lender, ScotPac has welcomed federal budget measures to assist small and medium businesses, including the temporary extension to the instant asset write-off threshold.
ScotPac CEO, Jon Sutton said the temporary extension to the instant asset write-off threshold to $20,000 for businesses with a turnover of up to $10 million for one year was a welcome initiative, albeit more restrictive than in previous years.
“The extended instant asset write-off is good news for SMEs planning to purchase assets up to $20,000 as it provides an extra incentive for them to invest in growing their business,” Mr Sutton said.
“We know from our most recent SME pulse check (SME Growth Index Q1, 2023) that 60% of SMEs are planning to invest in their business in the next six months, up from 55% a year earlier.
“While the initiative represents a reduction in the asset value limit and turnover eligibility threshold from the initial policy introduced in 2020, many SMEs will still welcome this extension which will in turn benefit other businesses throughout their supply chains,” Mr Sutton said.
Mr Sutton said other key budget initiatives for SMEs included:
- A new Small Business Energy Incentive that provides businesses with turnover less than $50 million with a bonus 20% tax deduction for eligible depreciating assets, up to $100,000 for energy saving upgrades.
- Cash flow support through a halving of the GDP adjustment factor from 12% to 6% applied to Pay As You Go (PAYG) and GST instalments.
- $392 million to launch the Industry Growth Program, aimed at helping small businesses and startups commercialise concepts and grow their operations.
- $23.4 million to support small businesses to build resilience to cyber threats.
- $18.1 million over four years from 2023–24 to help businesses compete for tenders and improve SME awareness of federal government contracts.
“Measures like these that keeps more working capital in the pockets of SME owners and create more opportunities for SMEs to grow and employ more people are positive for the whole economy,” Mr Sutton said.
Mr Sutton encouraged SME owners to engage with their broker or advisor to ensure they were maximising opportunities available to them under the sorts of measures outlined in the Budget.
“A lot of SME owners remain unaware of the range of financial support options available to make running and investing in their business easier,’ Mr Sutton said.
“ScotPac has the breadth of products and experience to help more businesses in more situations than any other non-bank lender, including invoice finance, asset finance and online business loans.
‘Our new Partner Portal also provides brokers and advisors with all the tools they need to quickly find the right solution for their clients and grow their own business at the same time.”
ScotPac is Australia and New Zealand’s largest non-bank SME business lender, providing funding to small, medium and large businesses from start-ups to enterprises exceeding $1 billion revenues. For more than 30 years ScotPac has helped thousands of business owners succeed, offering fast and flexible funding. From simple to complex, small to large, start up, growth or turnaround – ScotPac can help with a range of funding from Invoice, Trade or Asset Finance to Home Loans and Business Loans.
For more information contact:
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