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The federal government has introduced legislation that will extend instant asset write-offs for small businesses.
Treasurer Scott Morrison has announced that legislation has been introduced by the federal government that will extend the $20,000 instant asset write-off for small businesses by 12 months to 30 June 2019.
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Initially introduced on 12 May 2015, the initiative allows small businesses, which buy an asset that costs less than $20,000, to immediately deduct the business portion in their tax return.
Small businesses will be eligible for the $20,000 asset write-off if:
- The business has an annual turnover of less than $10 million.
- The asset was first used or installed ready for use in the income year they are claiming it in.
“The extension of this initiative benefits hardworking Australian small businesses, improving their cash flow and providing a boost to business activity and investment for another year,” Mr Morrison said.
“This measure builds on the government’s Enterprise Tax Plan to reduce company tax rates to 25 per cent to ensure Australian businesses can remain internationally competitive.
“Keeping business competitive is part of the government’s plan for a stronger economy, to create jobs and boost wages.”
[Related: SME outcomes dominate discussion at aggregator summit]
