Instant asset write-off for small businesses to be increased
Small businesses on the Sunshine Coast will benefit from the Liberal National Government’s decision to increase the instant asset write-off threshold from $20,000 to $25,000, effective immediately, and to extend the initiative for another year beyond its existing June 2019 end-date.
The instant asset write-off will enable over 20,000 small businesses in the Sunshine Coast federal electorate of Fisher with an annual turnover of less than $10 million to access the new $25,000 incentive from now until 30 June 2020.
Member for Fisher Andrew Wallace said “The Sunshine Coast is the small business capital of Australia. Small businesses are critical to building a strong local economy which will deliver the good, meaningful jobs we need and help us all to get ahead.”
“The Liberal National Government understands that when business owners are able to keep more of their own money, they are able to invest back into the business, boost productivity, grow the economy and create new local jobs.”
“The increase and extension of the instant asset write-off builds on our Government’s record of backing small and medium businesses on the Sunshine Coast. I would encourage local owners to consider how they might take advantage of this opportunity with fresh investment in their business’s future.”
Minister for Small and Family Business, Skills and Vocational Education, Senator Michaelia Cash said the increase and extension of this initiative will further improve cash flow for small business owners by bringing forward tax deductions, providing a boost to small business activity and encouraging more small businesses to reinvest in their operations, and replace or upgrade their assets.
“Our Government first introduced the $20,000 instant asset write-off in the 2015-16 Budget. In the first year alone, more than 300,000 small businesses took advantage of this opportunity – this equates to an average of approximately 800 businesses per day making an investment through this initiative,” Minister Cash said.
The Liberal National Government has delivered:
- Tax relief for incorporated small and medium businesses, with turnovers of less than $50 million per annum. These companies will move to a 25 per cent tax rate by 2021-22;
- An increase to the rate of the tax discount for unincorporated small businesses with turnover below $5 million to 16 per cent by 2021-22; and
- An increase to the small business entity turnover threshold from $2 million to $10 million per annum, which has extended access to a range of tax concessions.
“Backing small business is part of our plan for a stronger economy to help them reach their potential and create even more jobs,” Mr Wallace said.