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$20,000 Instant Asset Write-Off Scheme Extended by 12 Months
The 2017-18 Federal Budget has confirmed the widely anticipated extension of the $20,000 instant asset write-off scheme.
Small businesses with a turnover of less than $10 million will have a further 12 months up until the 30 June 2018 to benefit from the instant asset write-off.
In announcing the extension Treasurer Scott Morrison said "Small business owners are out there fighting for growth in their businesses every day. They deserve our respect and support."
"Backing up our recently legislated tax cuts, small businesses with a turnover up to $10 million will continue to be able to immediately write off expenditure up to $20,000 for a further year." Mr Morrison said.
First introduced for assets acquired after 7.30pm on 12 May 2015 the instant asset write-off has been very popular with small businesses and now sees it not only extended by another 12 months but has thesmall business turnover threshold increased from $2 million to $10 million per annum.
The instant asset write-off allows small businesses to immediately deduct assets costing less than $20,000 instead of claiming deductions over a number of years. It is on a per asset basis allowing several assets costing less than $20,000 to be aggregated and deducted.
This announcement is recognition by the Federal Government that small business is the engine room of the economy, making up 99 per cent of all businesses and contributing $380 billion to the economy.
The tax concession is designed to benefit GIO business customers by improving their cash flow and helping them to reinvest in their business and replace or upgrade their assets.
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