Extension of the asset write-off scheme for small business
The 2017 Budget sees an extension for the $20,000 asset write-off scheme for small businesses.
The 2015-16 Budget introduced an instant asset write-off for small business; allowing small businesses to immediately deduct the business portion of most assets if they do not exceed $20,000.
Assets must be purchased between 12 May 2015 and 30 June 2018 to be eligible. Assets can be new or second hand and can be claimed in the tax return of the year it was purchased or first used.
On 9 May 2017, the Government announced that this scheme would be extended a further 12 months until 1 July 2018. While there is no mention of what will occur in relation to this scheme after 1 July 2018, this is a much-welcomed change for small businesses. The write-off assists small businesses to invest in their business and grow their assets.
The increase of the small business entity turnover threshold from $2 million to $10 million means more businesses can take advantage of the extension.