Federal government expands asset write-off scheme
The federal government has proposed an expansion of its ‘instant’ tax deduction threshold for small businesses, increasing the asset threshold from $20,000 to $30,000.
The eligibility criteria will also be expanded to include businesses with less than $50 million in annual revenue, up from $10 million.
Under the scheme, which was first introduced in the 2015 federal budget, the write-off can be used every time an asset under the threshold is purchased. The government announced its intention to expand the threshold from $20,000 to $25,000 in January, although this is yet to be legislated.
In his budget night speech, treasurer Josh Frydenberg said the expansion will cover an extra 22,000 businesses, with more than 350,000 having already taken up the instant asset write-off.
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