Australian small and medium businesses (SMBs) have achieved some valuable gains in the 2017 Federal Budget, as the Government aims to stimulate the economy, improve cash flow and competition, and encourage businesses to invest for growth.
The most immediate gain is the 12-month extension to the instant tax write-off for asset purchases up to $20,000 by businesses with an annual turnover of up to $10 million.
This not only helps free up cash flow, but encourages businesses to invest in assets to drive income, increase productivity and secure their operations.
There is a growing body of research showing an increasing gap emerging between high and low performing businesses, where innovation and the effective use of technology are increasingly important drivers of performance.
The long-held advantage of the size of a business is less relevant today, as nimble smaller companies now have access to powerful and affordable technologies to be more mobile, work from the cloud, upload and share data in near real time, reach new customers and markets through ecommerce and rapidly scale at the right time.
The extension to the instant tax write-off makes it even more attractive for businesses to invest in these types of smart technologies.
For smaller businesses, tools such as the latest smartphones, tablets, laptops and mobile hotspots helps provide valuable ways to streamline processes, save time, work on and offsite and collaborate across teams and locations.
For bigger businesses, more complex IT systems and hardware such as routers, wireless LAN equipment, servers and firewalls enable larger scale digital transformation, assist in creating new opportunities for growth and delivering a better customer experience.
Telstra Business Awards Alumni, Daniel Gibbs from Posture Podiatry, who established the business in 2009, has shown how investing in the right technology can open new opportunities and accelerate growth.
“Investing in our internal technology infrastructure allowed me to gain comprehensive oversight of every aspect of the business’ operations, no matter where I was based, making it much simpler to identify potential areas for growth.”
“We’ve been able to use the instant tax write-off in purchasing major pieces of technologically advanced kit to expand our service offering and consequently grow our customer base much more rapidly than we would have been able to otherwise.”
The extension to the instant tax write-off initiative follows the reduction in business tax-rates to 27.5 per cent for those with turnover up to $10m, which was introduced in July 2016.
So if you’re behind one of Australia’s 3m-plus small and medium businesses, it’s a good time to plan how your business can become ‘that’ business.