The Liberal and Nationals’ Government continues to back small business by extending the $150,000 instant asset write-off for six months to 31 December 2020.
Australian businesses with annual turnover up to $500 million will be able to take advantage of this extended timeframe to invest in assets to support their business as the economy reopens and Coronavirus health restrictions continue to be eased.
These measures will support more than 3.5 million businesses and are designed to support business sticking with investment they had planned, and encouraging them to bring investment forward to support economic growth over the near term.
Federal Member for Capricornia Michelle Landry said the instant asset write-off also helps to improve cash flow for businesses by bringing forward tax deductions for eligible expenditure.
“The extension will give businesses additional time to acquire and install assets, as they will now have until the end of the year.
“We have already seen the positive effects of the extension here in Rockhampton with Doblo’s Farmers Market purchasing a new walk-in fridge for $140,000 and instantly writing it off.
“The Federal Government is continuing to back small businesses during the coronavirus pandemic and I encourage every small business in Capricornia to take advantage of this before the end of the year.”
The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided each costs less than $150,000.
Assets can be new or second hand and could include for example a truck for a delivery business or a tractor for a farming business.