Boost for small business
MORE than 100 small businesses in the Derwent Valley have benefited from the Federal Government’s instant asset write-off scheme, which has been extended until June next year.
Liberal Senator Jonathon Duniam said close to 300,000 Australian small businesses had taken advantage of the scheme, including more than 100 busi- nesses in the Derwent Valley.
The program enables businesses to claim up to $20,000 for asset purchases and immediately write them off, rather than go through the usual depreciation process.
The instant asset write-off helps small businesses increase their bottom line and improve cash flow, and increase investment and job cre- ation in the Derwent Valley.
“In 2015-16, the number of claims increased by 50,550 and the average amount claimed increased by $4065 to $9000,” Senator Duniam said.
“This means more money in the pockets of Tasmanian small businesses so they can grow their businesses, employ workers and pay them more.
“That is why the Coalition Government increased the per-asset threshold of the in- stant asset write-off from $1000 to $20,000 and extended the program in the Budget until June 30, 2018.”
Federal Small Business Minister Michael McCormack said small business was a major contributor to the economy, employing almost half the workforce.
“Creating the right conditions for the sector to thrive will create local jobs, build communities and continue to grow the economy,” he said.
“The instant asset write-off is the shot in the arm that small business needs.”
Senator Duniam said small businesses would also benefit from lower taxation.
“The Coalition Government recently secured tax cuts for around 3.2 million small and medium Australian businesses employing 5.6 million workers as part of its 10-year Enterprise Tax Plan,” he said.