A boost to keep spend­ing

TREA­SURER EX­TENDS POP­U­LAR AS­SET WRITE-OFF BY ONE YEAR

Wanneroo Times - - Fit For Business - In part­ner­ship with Emma Blake

SMALL busi­nesses are be­ing en­cour­aged to keep spend­ing after the Gov­ern­ment said it would ex­tend the in­stant as­set write-down for an­other year.

This means that com­pa­nies with an an­nual turnover of up to $10 mil­lion a year can write off any ap­proved as­set they buy for their busi­ness up to the value of $20,000 un­til June 30, 2018.

The mea­sure was first in­tro­duced in 2015, but will now be avail­able to a fur­ther 90,000 busi­nesses fol­low­ing the Gov­ern­ment’s de­ci­sion ear­lier in the year to re­de­fine small busi­nesses as be­ing those with turnover of up to $10 mil­lion a year, up from those with an an­nual turnover of $2 mil­lion.

The move, which was an­nounced by Trea­surer Scott Mor­ri­son in this year’s Bud­get, has been wel­comed by com­pa­nies and in­dus­try bod­ies alike.

“Small busi­ness own­ers are out there fight­ing for growth in their busi­nesses ev­ery day. They de­serve our re­spect and sup­port,” Mr Mor­ri­son said.

“Back­ing up our re­cently leg­is­lated tax cuts, small busi­nesses with a turnover up to $10m will con­tinue to be able to im­me­di­ately write off ex­pen­di­ture up to $20,000 for a fur­ther year.”

Last year, the Gov­ern­ment dropped the com­pany tax rate for small com­pa­nies to 27.5 per cent, the low­est level in 50 years.

The pop­u­lar­ity of the $20,000 tax con­ces­sion saw al­most 100,000 small busi­nesses make claims in the first six months of its op­er­a­tion, ac­cord­ing to Trea­sury data.

Busi­nesses claimed a to­tal of $418.5 mil­lion be­tween July 1 and De­cem­ber 15, 2015, com­pared with only $250 mil­lion for the same pe­riod the year be­fore.

The Coun­cil of Small Busi­ness Aus­tralia, which called for the ex­ten­sion in its usual preBud­get sub­mis­sion to the Gov­ern­ment, said pro­vid­ing ad­di­tional cash flow to small busi­ness and op­por­tu­ni­ties for in­vest­ment and in­no­va­tion were im­por­tant to stim­u­lat­ing eco­nomic ac­tiv­ity and cre­at­ing jobs.

Peak ru­ral lobby group the Na­tional Farm­ers Fed­er­a­tion also strongly sup­ports the scheme, which has en­abled farm­ers to in­vest in items such as fencing, fod­der stor­age up­grades, dams, wa­ter tanks, ir­ri­ga­tion chan­nels and wind­mills.

Fit For Busi­ness is a part­ner­ship be­tween Com­mu­nity News­pa­pers and Al­lianz.

Trea­surer Scott Mor­ri­son.

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