Ombudsman welcomes extension of instant asset write off
The Australian Small Business and Family Enterprise Ombudsman (ASBFEO), Kate Carnell, has welcomed the announcement by the government of the extension of the $20k instant asset tax write-off.
The instant asset write-off scheme will now be extended to small businesses until 30 June 2020 with an increase to the write off to include assets purchased under $25,000 in value.
Carnell welcomed the extension of the scheme. She said as well as the increase, it is good news for small businesses looking to purchase a new or second-hand asset in the coming year.
“The scheme allows small businesses to immediately deduct assets costing less than $25,000. This is instead of claiming deductions over a number of years. And there is no limit on how many assets can be claimed.
“The small business sector represents 99 per cent of all businesses in Australia… This measure will give small businesses more opportunities to grow and thrive.”
While the asset write-off is welcome, Carnell suggested it is vital businesses understand this is a tax deduction, not a rebate.
Ms Carnell then said. “So you need to have sufficient profit to write off the new asset against.”
“We will be working with the government, the Australian Taxation Office, industry associations, accountants and bookkeepers to ensure small business knows about this important opportunity.”
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