The instant asset write-off scheme will now be available to small businesses until 30 June 2020 for assets purchased under $25,000 in value. The scheme allows small businesses to immediately deduct assets costing less than $25,000 instead of claiming deductions over a number of years. This is good news for small businesses looking to purchase a new or second-hand asset, such as a vehicle, printer, or computers.
There is no limit to the number of assets claimed. This decision is a sign that the Government is listening to industry on what is needed to support small business.
The Treasurer is set to introduce the extension of the scheme as legislation when Parliament resumes on 12 February.
The small business sector represents 99% of all businesses in Australia, so this measure should give small businesses more opportunities to grow and thrive.
Small and family businesses need to remember that this is a tax deduction, not a rebate. Therefore, they need to have sufficient profit to write off the new asset against.