A boost to keep spending
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 pre-budget 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.