Businesses with a turnover of less than $10 million can write-off the business portion of assets they bought and installed, for less than $20,000 each, in their next tax return.
While this is welcome news for small business, the law only provides for an extension to 30 June 2019.
Associations for small business, like the Institute of Public Accountants, are pushing for the write-off to be a permanent fixture.
“What should be kept in focus is the positive impact that this initiative has on the broader economy as it incentivises small businesses to reinvest in their future, making way for growth, employment and prosperity,” said IPA chief executive Andrew Conway.
“We fully support a higher instant asset write-off becoming a permanent feature of our tax system going forward. The Henry review into Australia’s tax system recommended that a higher threshold should apply.
“The need for this initiative to be set in stone, particularly for small businesses, is paramount as it brings an injection of economic growth, giving small businesses the confidence to buy new equipment, reinvest in their operations and grow.”
To learn more about how this concession can apply to your business, click here.