Delivered: Instant asset write-off extension
Australia's 3.2 million small businesses can continue to purchase equipment up to $20,000 and write it off immediately thanks to legislation passed by the Senate today, Small Business Minister Michael McCormack says.
“Around Australia I have heard from hundreds of small businesses how helpful the $20,000 instant asset write-off is to purchase the equipment they need to grow and create opportunity,” Mr McCormack said.
“The Government listened to feedback of small business owners and operators and extended the program in the Budget.
“I have seen firsthand how small businesses across the country use it to grow, invest in themselves and get more customers through the door.
“From a Greek café in Parramatta which told me about the new kitchen equipment creating a ‘chain reaction’ in the local community and improving staff morale, to the Bundaberg jeweller whose new drill will help the family enterprise make its product more efficiently, I know this program helps small business grow.
“Already, a manufacturer of silo equipment in the New South Wales Central West is seeing an increase in orders for farm grain feeders and catering companies in regional Western Australia are looking to buy new fridges, thanks to this Government’s extension.
“The 3.2 million small businesses now have the freedom needed to purchase new equipment and expand, thanks to the Budget Bill which passed the Senate today."
Mr McCormack said recent tax cuts for small business – which delivered a 27.5 per cent tax rate – also redefined ‘small business’, meaning more Australian businesses are now eligible for the instant asset write-off.
“In cutting the small business tax rate to its lowest level in many, many decades we also redefined ‘small business’ to a $10 million annual turnover, up from $2 million,” Mr McCormack said.
“This means thousands more small businesses are now eligible for the write-off, as well as paying less tax.
“Shopping local is a great way to see the small business investment benefit the local community, as each and every additional dollar spent locally injects confidence in that community,” Mr McCormack said.
“Small businesses always back their regions and I urge them to use the instant asset write-off extension to keep that money flowing around local communities to build the economy and create jobs.
“Investment will help create local jobs and opportunities for more Australians as more small businesses grow and expand into the future.”
For more information on support for small business, please visit www.business.gov.au/smallbusiness.