$20,000 instant asset write offs continue for small business

Small businesses can continue large asset write offs up to $20,000.

A budget bill passed through the senate on June 15 means small businesses can continue to claim the equipment they need.

Federal member for Hume Angus Taylor said more than 15,000 businesses across the electorate would be eligible to purchase equipment priced up to $20,000 and write it off immediately.

Business boost: Angus Taylor with Goulburn small business owner Janarie Micallef of Something Special. Photo: supplied

Business boost: Angus Taylor with Goulburn small business owner Janarie Micallef of Something Special. Photo: supplied

“Around my electorate I have heard from hundreds of small businesses how helpful the $20,000 instant asset write-off is to purchase the equipment they need to grow and create opportunity,” Mr Taylor said.

He said the government had listened to small business owners’ feedback and extended the program in the budget.

Mr Taylor said recent tax cuts for small business – which delivered a 27.5 per cent tax rate – also redefined ‘small business’, meaning more Australian businesses were eligible for the instant asset write-off.

“In cutting the small business tax rate to its lowest level in 50 years we also redefined ‘small business’ to a $10 million annual turnover, up from $2 million,” Mr Taylor said. “This means thousands more small businesses are now eligible for the write-off, as well as paying less tax.”

Mr Taylor encouraged shoppers to buy locally and support small businesses which benefited the community and helped to build the economy and create jobs.

“Small business is the engine room of our economy, that’s why we’re backing them with tax cuts, simpler paperwork and the instant asset write-off program,” he said.

For more information on support for small business, visit www.business.gov.au/smallbusiness.