An extension to the popular instant asset write-off programme is one step closer thanks to a Bill introduced to Parliament this week, Small Business Minister Michael McCormack says.
“Across Australia I heard from hundreds of small business people how helpful the $20,000 instant asset write-off programme is to help businesses grow, pursue new ideas and hire more Australians,” Mr McCormack said.
“I took that feedback to the Budget process and am delighted the Liberals and Nationals in Government have delivered an extension for another year, meaning our 3.2 million small businesses can continue to purchase the new equipment they need and write it off immediately.”
Federal Member for Forde Bert van Manen has thrown his support behind the move, after campaigning hard to make instant asset write-offs a reality for small businesses in the last two federal budgets.
“The instant asset write-off is a game changer for our small businesses in Forde in terms of improving their cash flow and making it possible for them to grow and hire more staff,” Mr van Manen said.
“This extension means more jobs will be created, which will in turn boost our local economy and move Forde towards the future.”
Mr McCormack said the Government recently redefined ‘small business’, meaning businesses with a turnover of up to $10 million now qualify for the programme, as well as reducing the tax rate for small business to its lowest level in many decades.
“Like so many Australians in small business, I understand that profit and turnover aren’t the same,” Mr McCormack said.
“I also know how any cut in the tax you pay will help you expand your business and employ more people, which is why tax cuts – to the lowest level in many decades – are central in our small business plan.
“We have redefined small business to a $10 million turnover so more businesses can use it to write-off the cost of the new equipment they need, to help them have a go and hire more.”
Mr McCormack said the Labor Party has confirmed it will raise taxes for small business and reduce access to the instant asset write-off.
“While our plan backs small business – which already employs almost half the Australian workforce – the Labor Party voted against tax cuts and increasing access to the instant asset write-off,” Mr McCormack said.
“We will support small business to grow and hire more, and it’s clear Labor will stand in the way.”
To find our more, search ‘small business’ or visit https://www.business.gov.au/smallbusiness.