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 year, reports SmartCompany.

The scheme allows small businesses with an annual turnover of up to $10 million to immediately deduct eligible assets worth up to $20,000, and is now set to expire on 30 June 2019 instead of 30 June this year.

The write-off was first introduced in the 2015 federal budget, and was also extended in last year’s federal budget.

In the budget papers, the government said the extension of the scheme will ‘improve cash flow for small businesses, providing a boost to small business activity and investment for another year’.

The extension is projected to cost $350 million.

Category: Local news