Small businesses are set to benefit from the 2019-20 Federal Budget announcement, with the instant asset write-off scheme threshold increased from $25,000 to $30,000 per asset.
In the wake of the 2 April budget, Treasurer Josh Frydenberg says that the instant write-off scheme is set to alleviate cash flow pressures on small businesses until 30 June 2020.
“From tonight the instant asset write-off will be increased and expanded. Increasing from $25,000 to $30,000, it can be used every time an asset under that amount is purchased. Allowing a café to get a new fridge or grill,” says Treasurer Josh Frydenberg in his official budget press release.
The eligibility for the 2019 budget asset-write off scheme applies to small businesses earning up to $10 million and medium-sized businesses earning up to $50 million in an annual turn-over.
“Small businesses are the engine-room of our economy. They are integral to every local community. People running a small business put their livelihoods on the line,” says Frydenberg.
The Morrison Government is set to fast-track planned tax cuts for small and medium businesses by five years. The tax rate will reduce from 27.5 per cent to 26 per cent next year, and 25 per cent starting in 2021.
“We want small businesses to prosper, and we are backing them to do so by cutting their taxes 25 per cent and increasing their access to finance with a new $2 billion fund, this ensures small businesses are paid on time, both by the government and big businesses,” says Frydenberg in his budget speech.
He adds that the Morrison Government is building a better tax system to empower small and medium-sized businesses to invest, grow and create more jobs.
“This instant write-off will cover an additional 22,000 businesses, employing 1.7 million workers in Australian. Already more than 350,000 businesses have taken up the instant asset write-off,” Frydenberg says.