Need a new welcoming couch for your important visitors? Or a refresh of the tools or technical equipment that keep the business ticking? This is a time to heed the saying, you’ve gotta spend money to make money. This scheme takes into account the need for small businesses to keep investing in their business in order to thrive and grow.
Just note that the assets need to be acquired, delivered and operational prior to June 30, and then the claim can be made in the financial year of 2017-18.
Looking to the Future:
Since 2015, the scheme has been valuable for many Australian small businesses. In the Federal Budget announced this month, the government declared another 12-month extension to the scheme — previously, it was due to shrink to a $1,000 write off by June 30, 2018; now SMEs have another year to take advantage. (Essentially, your small business could get the write off this year and another one next year with assets acquired, delivered and operational before June 30 in each year.)
This is the second extension so far — when the government first introduced it in 2015, it was available to businesses with an annual turnover of up to $2 million for 12 months. In 2017, the government extended the tax break to businesses with the higher annual revenue of up to $10 million.
Small Business Minister Michael McCormack said in 2017 that the extension “continues the government’s support for small businesses to pursue new ideas, invest in themselves and create more jobs.”
And if the Council of Small Business Australia and Australian Chamber of Commerce and Industry are successful, the extension may become a fixture. The COSBOA and Chamber have spearheaded a move to make it permanent, declaring it an essential incentive for Australian businesses.
“This is an important policy to all small businesses and we believe it must continue going forward,” said the COSBOA submission to the government.
Read more about the evolution of the $20,000 instant asset tax write-off scheme here.