Many firms eye instant asset write-off

Only one in 10 small businesses has taken advantage of the federal government's $20,000 instant asset write-off but two out of three intend to follow suit, a survey suggests.

The survey commissioned by cloud accounting firm Xero was conducted a month after the May budget which featured a small business package that included a suite of tax benefits.

Xero Australia managing director Chris Ridd said the fact so many small businesses were planning to utilise the immediate asset deduction showed the policy would provide much-needed help to small businesses to "grow and thrive".