The federal government has extend and increase the instant asset tax write-off which allows small business to get instant returns on expenses.
New legislation will allow the write-off threshold to increase from $20,000 to $25,000 and will be extended for another year, from June 2019 to June 2020.
Businesses with an annual turnover of less than $10 million will be able to access the instant write-off as of January 29 this year.
The treasury and minister for small and family business says the increase and extension will “improve cash flow for hard working Australian 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,” the treasury says in a statement.
In the instant asset write-off’s first year of introduction, according to the tax office, over 300,000 small businesses bought assets to take advantage of the initiative.
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