Federal government extends $20,000 tax write-off for small business

The federal government will extend its $20,000 ‘instant’ tax deduction threshold for small businesses for another 12 months.

The scheme, which was first introduced in the 2015 federal budget, allows small businesses with an annual turnover of up to $10 million to immediately deduct eligible assets worth up to $20,000.

The write-off was meant to expire on 30 June 2017, but its extension for at least one more year was confirmed in the 2016-17 federal budget papers.

Federal minister for small business Michael McCormack said that the scheme ‘helps small businesses invest in their business and replace or upgrade their assets’. ‘I have heard firsthand how helpful the instant asset write-off is for many small businesses to invest in the capital equipment they need to grow and—importantly—create more jobs,’ said McCormack.

The extension is projected to cost $650m.

Category: Local news