Boost for small busi­ness

The Gazette (Derwent Valley) - - NEWS - PA­TRICK GEE

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.

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