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OnDeck urges small businesses to act now to save on tax

by OnDeck Australia,   May 24, 2023

The small business lender suggests five steps small businesses can consider ahead of 30 June to trim tax and position the enterprise for a stronger new financial year. 

  • Small businesses may be able to claim a variety of tax deductions that offer savings on tax today while strengthening the business for the future. 
  • With limited time remaining before EOFY, small businesses need to act fast to maximise their tax savings for the current financial year. 
  • OnDeck’s Lightning Loans can have funding decisions to approved small business in as fast as 2 hours. 

Leading online small business lender OnDeck Australia is encouraging the nation’s small businesses to explore opportunities that can simultaneously help the enterprise save on tax while strengthening the business for the new financial new year. 

 

Mr Cameron Poolman, CEO of OnDeck Australia, said, “We have pulled together strategies that may allow small businesses to enjoy a tax break this financial year. As Australia’s tax laws are complex, I encourage small businesses to speak with their professional tax adviser to know if their business is able to claim a specific deduction.” 

Cameron Poolman Headshot

OnDeck Australia CEO Cameron Poolman

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

1. Take a closer look at inventory 

Review trading stock, looking for product lines that are slow movers, obsolete, or damaged and consider writing down or writing off these items off completely prior to the end of the financial year.   

 

2.Take advantage of temporary full expensing 

Temporary full expensing allows businesses to write-off the full cost of an asset in the current financial year. However, the scheme will end on 30 June 2023. The Federal Budget for 2022/23 has announced that small businesses will be able to claim an instant asset write-off for assets costing up to $20,000 until mid-2024. 

 

Assets such as plant and equipment must be in place and ready to use by 30 June 2023 in order to qualify for an instant write-off in the current financial year 

 

“Temporary full expensing isn’t just about valuable tax savings. Investing in new plant and equipment can give a small business valuable productivity gains coupled with savings on energy costs,” said Mr Poolman. 

 

3. Consider prepaying expenses  

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

 

4. Upskill employees 

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

 

5. Boost tech capabilities 

The Small Business Technology Investment Boost introduced in the 2022/23 Federal Budget, allows small businesses to claim 120% of the cost of digitising business operations. Among the costs that may qualify are spending on portable payment devices, improvements to a business’s cyber security systems or subscriptions to cloud based services. Any hardware must be in place by 30 June 2023 to qualify for the Technology Investment Boost. 

 

Brokers can play a role before June 30  

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

 

Mr Poolman said, “It’s one thing to have a tax break available, but as brokers know, small businesses often need funding to take advantage of deductions such as temporary full expensing. This is where OnDeck’s fast and efficient loan application and approval process can support small businesses in the run up to 30 June.”  

 

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 little as two hours. 

 

“We know that applying for funding through a traditional lender can be a drawn-out process, which often sees a small business miss the boat when it comes to EOFY tax savings. This is a key area where brokers can lend support to their small business clients, by opening the door to a broader range of funding options. 

 

“OnDeck understands the need for speed at this time of year, and our Lightning Loans can help brokers and their small business clients tap into those last-minute tax deductions,” concluded Mr Poolman. 

 

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

 

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.

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