$25,000 instant asset write off and new incentives for small business to help drive jobs growth
At a recent gathering in Queensland the Prime Minister, Scott Morrison, outlined his vision for a stronger economy. He said that his government was determined to continue strengthening the Australian economy, and one of the central plans to make Australia even stronger was the creation of more jobs.
Crucial to the creation of new jobs was the growth of small businesses. Mr Morrison pointed out that there are now an additional 150,000 small businesses contributing to the Australian economy. “Government bills to small businesses are being paid faster, the BAS statement is simpler, small business taxes are being cut and we’re making small business finance easier as well”, he said.
Tim Lyford, Director Tax, Bentleys NSW said that the financial support being offered to small business by the Prime Minister would be a welcome boost for many. He said the government’s decision to extend the Instant Asset Write-off until 30 June 2020, and increasing the threshold from $20,000 to $25,000, which took effect from Tuesday 29th January 2019, was a real benefit.
Under the Morrison plan “every small business can instantly deduct each and every asset under $25,000”, he said.
Mr Morrison said, “This measure will allow the more than 3 million eligible small and family businesses with a turnover of up to $10 million a year, to keep $750 million of their own money so they can reinvest it in their business and support jobs and wages growth”.
If you would like more information on this latest government announcement and how it might apply to you, please contact your Bentleys Tax Advisor.