Cameron Poolman, CEO of OnDeck Australia, is urging small businesses to partner with a specialist lender to take advantage of the Energy Incentive and $20,000 instant asset write-off.
- The Albanese Government’s second budget offers a range of support for small businesses including energy bill relief, an Energy Incentive and an instant asset write-off of $20,000 available until mid-2024.
- To maximise the value of these incentives, many small businesses will need to spend in order to secure a tax saving.
- OnDeck research shows small businesses can struggle to secure funding with a mainstream lender, making it essential to partner with a small business lending specialist to take advantage of the newly announced tax breaks.
Sydney: Leading online small business lender OnDeck Australia welcomes the assistance offered to small businesses in the latest Federal Budget but is urging small businesses to partner with a dedicated small business lender in order to make the most of the initiatives.
The Albanese Government’s second Federal Budget has introduced an Energy Price Relief Plan, which will provide energy bill relief of up to $650 for eligible small businesses from July 2023.
The Energy Incentive will offer a bonus tax discount of 20% to help small businesses with annual turnover below $50 million electrify their heating and cooling, invest in more efficient white goods, and install induction cooktops, batteries and heat pumps.
The maximum that can be claimed through the Energy Incentive will be $20,000, meaning up to $100,000 worth of spending annually will be eligible for the incentive. The measure is expected to help up to 3.8 million small and medium-sized businesses.
The $20,000 instant asset write-off for small businesses will continue until the middle of next year, allowing businesses to deduct the full cost of assets up to that price, which are installed or ready for use before that date.
Mr Cameron Poolman, CEO of OnDeck, said, “Small business is the backbone of the Australian economy, and as such, any support for the small business sector is welcome.
“Energy bill relief of $650 is a plus for small businesses though it is likely to have only a negligible impact on many enterprises, and we would have liked to see considerably more relief. OnDeck research confirms that 66% of small businesses nationally are being impacted by rising electricity bills. One in four small businesses say higher power bills are having a greater impact on profitability than fuel costs or the rising cost of trading stock.”
In terms of the 20% tax bonus that small businesses can claim to electrify their operations, and the availability of the $20,000 instant asset write-off, both measures call for small businesses to spend money to access tax savings.
Mr Poolman noted, “Tax incentives are valued by the small business sector, however the challenge for small enterprises lies in accessing the funds needed to meet the spending requirements for the tax breaks. An OnDeck survey found one in four small businesses have been rejected for finance by a mainstream bank.
“Among those that have secured funding through a traditional lender, 25% say the application and approval process has been so protracted that the business has missed out on opportunities or lost revenue.”
Seek the assistance of a broker
Small businesses hoping to make the most of the tax savings offered by the Energy Incentive and instant asset write-off are being encouraged to talk to their broker for fast and efficient funding.
OnDeck’s Lightning Loans offer a fast-tracked application and approval process for loans up to $150,000, with funding decisions in 30 minutes or less. Funds are made available to approved applicants in as fast as two hours.
“Small businesses that partner with OnDeck can avoid the “slow no” of traditional lenders and take advantage of tax breaks sooner to reduce energy costs or invest in equipment that increases productivity or allows the business to explore new lines of revenue,” said Mr Poolman.
Prepared by OnDeck Capital Australia Pty Ltd ABN 28 603 753 215 (“OnDeck”) for general information purposes only. Content may belong to or have originated from third parties and OnDeck takes no responsibility for the accuracy, validity, reliability or completeness of any information. Information current as at May 2023. You should not rely upon the material or information as a basis for making any business, financial or any other decisions. Loans issued in Australia are subject to the terms of a loan agreement issued by OnDeck. Loans are subject to lender approval. OnDeck® is a Registered Trademark. All rights reserved.
About OnDeck
OnDeck Australia is the proven leader in transparent and responsible online lending to small business. Since launching in Australia in 2015, OnDeck Australia’s focus has always been on supporting small businesses with access to fast, efficient unsecured finance.
Today, OnDeck Australia offers a wide range of term loans customised for small business owners’ needs. OnDeck Australia is focused on taking the friction out of business lending offering unsecured business loans from $10,000 – $250,000 across 6 – 24-month terms. We’ve helped thousands of small businesses across a range of industries access funding quickly and easily, while maintaining a 5-star TrustPilot rating.
In 2021, OnDeck Australia launched The KOALA Score risk-prediction model that draws on big data, predictive analytics, plus data from multiple credit reporting agencies to enable more Australian small businesses to be approved for a commercial loan.
In 2021, OnDeck Australia also launched Lightning Loans, which enables the decisioning of loans up to $150,000 in as fast as 30 minutes, and funding in as fast as two hours. For more information, visit www.ondeck.com.au
