Government continues to support small businesses

On January 29 2019 the Government announced its continuing support to small businesses by increasing the instant asset write-off threshold to $25,000 from $20,000 and extending the initiative to 30 June 2020. This will take effect immediately.

Senator Michaelia Cash – Minister for Small and Family Business, Skill and Vocational Education said “the increase and extension will further improve cash flow for hard working Australian small business owners by bringing forward tax deductions, providing a boost to small business activity and encouraging more small businesses to reinvest in their operations, and replace or upgrade their assets.” The instant asset write-off was initially introduced in the 2015-2016 budget and more that 300,000 small businesses took advantage of the opportunity.

Already in support of the small business owners and the seven million people they employ the government has introduced:

• Tax relief for incorporated small and medium businesses, with turnovers of less than $50 million per annum. These companies will move to a 25 per cent tax rate by 2021-22

• An increase to the rate of the tax discount for unincorporated small businesses with turnover below $5 million to 16 per cent by 2021-22; 

• An increase to the small business entity turnover threshold from $2 million to $10 million per annum, which has extended access to a range of tax concessions.