The Australian Small Business and Family Enterprise Ombudsman has encouraged small business operators to take advantage of the Government’s instant asset write-off extension.
More businesses are now eligible to buy equipment (new or second hand) up to $20,000 and write it off immediately after legislation passed the Senate. Multiple claims can be made under the program. ‘Small business’ has also been redefined for tax purposes as having a turnover less than $10 million, up from $2 million. Ombudsman Kate Carnell welcomed the changes.
“The instant asset write-off program enables small business to immediately deduct assets costing less than $20,000 instead of claiming deductions over a number of years,” she said.
“This is a welcome incentive for small business to invest, which provides benefits for the broader economy and employment.”
Carnell said anecdotal evidence suggested only a small proportion of eligible businesses were taking advantage of the opportunity.
“I encourage small business operators to invest before June 30 and claim the tax deduction,” she said.
Assets that cost $20,000 or more can’t be immediately deducted.
Carnell said small businesses in some industries would generally require assets above the $20,000 threshold.
“Effectively, this means that some industries are disadvantaged,” she said.
“It makes more sense for the threshold to be raised so that all businesses can benefit, upgrade their assets and continue to grow to benefit the economy.
“I will continue to urge the Government to lift the $20,000 threshold because for some industries, like farming, it’s too low for them to purchase equipment.”
For more information visit www.business.gov.au/smallbusiness