300,000 small businesses benefit from instant asset write-off
Wednesday, 25 October 2017
Member for Groom Dr John McVeigh said close to 300,000 Australian small businesses have taken advantage of the Coalition Government’s instant asset write-off according to 2015-16 tax office data including 1535 in Toowoomba.
“The instant asset write-off is directly helping small businesses in increase their bottom lines and improving cash flow which means more investment and job creation in Groom,” Dr McVeigh said.
“In 2015-16, the number of claims increased by 50,550 and the average amount claimed increased by $4065 to $9000. This means more money in the pockets of small businesses on the Darling Downs 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 instant asset write-off from $1000 to $20,000 and extended the program in the Budget until 30 June 2018.
“Cash flow is so important for small business operators and the instant asset write-off means that tradies can invest in better tools, cafes and restaurants can upgrade their equipment and all small businesses can reinvest to grow their business.
Toowoomba Chamber of Commerce Chief Executive Officer Jo Sheppard is pleased to see local businesses take up the instant asset write-off option.
“The scheme provides support for SME’s to upgrade tools and equipment and it is great to see an increasing number of businesses here in Toowoomba taking it up,” Ms Sheppard said.
“I would encourage any SME owners who are not clear on what they can and can’t claim through the $20,000 instant asset write-off to speak to their tax agent to ensure they are claiming their maximum benefit.”
“Small businesses are fundamental to the health of the economy and employing approximately half of our region’s workforce. We must continue to support their growth in order to grow our overall economy,” she said.
Dr McVeigh said tens of thousands more small businesses are able to access the instant asset write-off thanks to the Coalition Government’s increase in the small business turnover threshold to $10 million per year.
“The extension of the instant asset write-off is just one part of the Government’s plan to boost the economy and help small businesses invest and grow.”
Small businesses are reaping the benefits of lower taxation after 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 Ten Year Enterprise Tax Plan in the 2016–17 Budget.
You can find out more about the Coalition Government’s small business measures at business.gov.au/smallbusiness