The Coalition Government continues to back small business with the announcement that it will extend the $150,000 instant asset write-off for six months to 31 December 2020.
Member for New England, Barnaby Joyce, said businesses with annual turnover of less than $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 over 3.5 million businesses nationally, employing more than 9.7 million employees. They are designed to support New England businesses sticking with 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.
“This extension is great news for local businesses, giving them additional time to acquire and install assets, as they will now have until the end of the year,” Mr Joyce said.
“Assets can be new or second hand and could include an excavator for an earthmoving business, new coffee machine for a local cafe or replacement header for a farming business.”
Hardworking Australian businesses can rest assured that the Coalition Government will do all that is necessary to support them to bounce back stronger and get to the other side of this crisis.
“Our priority is getting local business back up and running in the New England,” Mr Joyce said.