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The Federal Parliament has passed legislation designed to extend the $20,000 instant asset write-off for small businesses.
In a joint statement, Treasurer Josh Frydenberg and Minister for Small and Family Business, Skills and Vocational Education Michaelia Cash announced the passage of legislation designed to extend the $20,000 instant asset write-off for a further 12 months to June 2019 for small businesses with an annual turnover of less than $10,000.
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“The instant asset write-off is part of the Coalition government’s plan for a stronger economy and more jobs. By growing small and medium business, we grow their ability to reinvest and employ more Australians,” the statement reads.
The ministers claimed the extension of the asset write-off would provide additional investment opportunities for small businesses. Amid reports of funding constraints for SMEs.
“As a result of the successful passage of this legislation, these businesses will now have additional opportunities to reinvest in their business and replace or upgrade their assets.”
The announcement follows concerns voiced by the Australian Taxation Office (ATO) regarding the delay in the approval of the 12-month extension.
Further, the government also made reference to its overall policy agenda, which it claimed would support SME growth.
The government’s initiatives include:
- cutting the company tax rate for businesses with an annual turnover of less than $50 million from 30 per cent to 25 per cent, with businesses already benefitting from a 27.5 per cent rate;
- abolishing $5.9 billion worth of red tape and introducing a simplified BAS (business activity statement);
- protecting them from union thuggery through the Australian Building and Construction Commission (ABCC); and
- signing free trade agreements with China, Japan and South Korea as well as the Trans-Pacific Partnership.
[Related: Government inaction on asset write-offs could sting SMEs]
