OnDeck Urges Small Businesses to Act Now to Save Tax

Leading Online Small Business Lender ondeck australia is encouraging the country’s small businesses to explore opportunities that can help the enterprise save tax while strengthening the business for the new financial new year.

Cameron Poolman, CEO ondeck australiasaid, “We have put together strategies that can allow small businesses to enjoy tax breaks this financial year. As Australia’s tax laws are complex, I encourage small businesses to speak to their professional tax advisor.” to find out whether their business qualifies to claim a specific deduction.”

With the end of the financial year fast approaching, OnDeck believes there are five potential opportunities for small businesses to reduce the tax man’s take in 2022/23.

1. Take a Closer Look at Inventory

Review trading stock, look for slow-moving, obsolete, or damaged product lines, and consider writing off or discontinuing these items completely before the end of the fiscal year.

2. take advantage of temporary full spending

Temporary full expenditure allows businesses to write-off the full cost of an asset in the current financial year. However, this scheme will expire on 30 June 2023. The 2022/23 federal budget has announced that small businesses will be able to claim an immediate asset write-off for assets worth up to $20,000 until mid-2024.

Assets such as plant and equipment must be completed and ready for use by June 30, 2023, to qualify for the immediate write-off in the current financial year.

“Temporary full spending is not just about valuable tax savings. Investing in new plant and equipment can deliver valuable productivity gains to a small business, along with savings on energy costs,” Poolman said.

3. Consider prepayment expenses

Some small businesses may be able to pay certain expenses such as rent or insurance premiums before June 30 and claim the full deduction in the current financial year.

4. upskill employee

Small businesses with a gross annual turnover of less than $50 million may be eligible to claim a bonus 20% tax deduction for the cost of employee training under the Skills and Training Boost. Training must be conducted by an external registered provider to be eligible for the bonus tax break.

5. boost technical capabilities

The Small Business Technology Investment Boost, introduced in the 2022/23 federal budget, allows small businesses to claim up to 120% of the cost of digitizing business operations. Eligible costs include spending on portable payment devices, improvements to the business’s cyber security systems, or subscriptions to cloud-based services. Any hardware must be ready by June 30, 2023, to boost technology investment.

Brokers can play role before June 30

As June 30 approaches, small businesses need to act fast to take advantage of these tax breaks with the support of their brokers.

“Having tax breaks available is one thing, but as brokers know, small businesses often need funds to take advantage of deductions such as temporary completed expenses,” Poolman said. This is where OnDeck’s fast and efficient The loan application and approval process can support small businesses lasting until June 30.

OnDeck’s Lightning Loans provide a fast-track application and approval process for loans up to $150,000, with funding decisions made in 30 minutes or less. Funds are made available to approved applicants in less than two hours.

“We know that applying for funding through a traditional lender can be a lengthy process, which is often what a small business misses when it comes to EOFY tax savings. This is a key area where broker funding options support your small business customers by opening the door to a wide range of

“OnDeck understands the need for speed this time of year, and our Lightning loans can help brokers and their small business clients with last-minute tax deductions,” Poolman concluded.