The Morrison Government continues to back small business with the announcement it will extend the $150,000 instant asset write-off for six months to December 31, 2020.
Federal Member for Bonner Ross Vasta MP said this meant businesses with annual turnover of less than $500 million would be able to take advantage of the 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 over 3.5 million businesses nationally, employing more than 9.7 million employees,” Mr Vasta said.
“They are designed to support businesses to stick with the investment they had planned and encourage business to bring investment forward to support economic growth over the near term.”
The instant asset write-off also helps to improve cash flow for businesses by bringing forward tax deductions for eligible expenditure.
The threshold applies on a per asset basis, so eligible businesses can immediately write-off multiple assets provided each costs less than $150,000.
Mr Vasta said the extension of the instant asset write-off was great news for local businesses in Bonner, giving them additional time to acquire and install assets, as they now had until the end of the year.
“Assets can be new or second hand and could include for example a truck for a delivery business or a coffee machine for a cafe,” Mr Vasta said.
“Hardworking Australian businesses can rest assured the Morrison Government will do all that is necessary to support them to bounce back stronger and get to the other side of this crisis.
“Local business are the lifeblood of our economy and I want to do everything I can to assist them through this difficult time.”