Small and medium businesses around the country have been given another 12 months to take advantage of the federal government’s $20,000 instant asset tax write-off scheme.
Small Business Minister Michael McCormack said on Tuesday evening the government is ‘backing’ small businesses by extending the popular scheme, which was first introduced in the 2015 federal budget.
So what exactly does this mean for your business? How can you take advantage of the scheme?
Here’s a summary of the key points from the sub-$20,000 instant asset write-off scheme.
What is the $20,000 tax break?
Small businesses can claim immediate tax deductions for as many sub-$20,000 (excluding GST) purchases they make until June 30, 2018, rather than having to claim those purchases as deductions spread over several years.
This is a huge increase from the previous instant asset write-off threshold of $1,000.