Close to 300,000 Australian small businesses have taken advantage of the Coalition Government’s instant asset write off, according to 2015-16 tax office data.
Minister for Small Business Michael McCormack said, ““The instant asset write off is directly helping small business bottom lines and improving cashflow for small business, which means more investment in local communities, higher wages and more local job opportunities.
“In 2015-16, the number of claims increased by 50,550 and the average amount claimed increased by $4,065 to $9,000. This means more money in the pockets of small businesses so they can grow their businesses, employ workers and pay them more.
“As I travel around the country meeting great Australian businesses from Busselton to Bathurst or Port Macquarie to Port Pirie, I am hearing first-hand that the instant asset write-off is the shot in the arm that small business needs,” McCormack added.
The Minister said the data illustrates why the Government increased the per-asset threshold of the instant asset write off from $1000 to $20,000 and extended the program in the Budget until 30 June 2018.
“Small business is a major contributor to our economy and employs almost half of our workforce. Creating the right conditions for the sector to thrive will create local jobs, build communities and continue to grow the economy,” McCormack said.
“Cashflow is so important for small business operators and the instant asset write off means that tradies can invest in better tools, cafes and restaurants can upgrade their equipment and all small businesses can reinvest to grow their business.
“These great results are set to continue with tens of thousands more small businesses able to access the instant asset write-off thanks to the Government’s increase in the small business turnover threshold to $10 million per year. The extension of the instant asset write-off is just one part of the Government’s plan to boost the economy and help small businesses invest and grow.”
