A win for small business with asset write-off extension
Legislation to extend the $20,000 instant asset write-off has passed through Parliament in a major win for small-to-medium businesses seeking further growth.
Treasurer Josh Frydenberg said it has delivered on its commitment in the 2018-19 budget to extend the write-off for a further 12 months to 30 June 2019 after it passed through the Senate today.
“Across Australia, there are around 3.3 million small businesses with an annual turnover of less than $10 million that are eligible to access the write-off,” Mr Frydenberg said.
“As a result of the successful passage of this legislation, these businesses will now have additional opportunities to reinvest in their business and replace or upgrade their assets.
“Across Australia, there are around 3.3 million small businesses with an annual turnover of less than $10 million that are eligible to access the write-off.”
However, the Australian Small Business and Family Enterprise Ombudsman Kate Carnell told a Parliament inquiry that, while the current $20,000 write-off policy “is a really good one”, she would like to see the write-off put into longer-term policy.
She added that just inserting the instant asset write-off again for the next budget “doesn’t give small business an opportunity to plan for a future investment”.
“Because the issue of major asset purchases, or major capital purchases, in small business is not just the capital purchase itself. It’s the whole red tape issue of depreciation and all the sorts of things that go with that,” Ms Carnell said.
“But with a small business, it’s not like they’ve got a whole lot of money floating around in the bank. For them to have a major investment into capital to grow their business, they need to be able to plan for that, and to be able to write it off immediately would be a huge benefit.”